United Health to acquire Humana Inc
Article Abstract:
The United Healthcare Corporation has agreed to purchase fellow health insurer Humana Inc. for $5.5 billion in stock. Under the terms of the transaction, United Healthcare will assume $850 million of Humana's debt and exchange one of its shares for two shares of Humana. The resulting union will form a combined company with some 10 million members across the US, and some 602,000 members in health maintenance organizations in Miami. Analysts believe that this membership will enable United Healthcare to hold 48% of the Miami market. Both United Healthcare and Humana state that the acquisition will enable them to offer services to patients and provide national coverage for large employers. One healthcare consultant stated that the combination will diminish competition and deprive both consumers and employers of choices.
Comment:
United Healthcare Corp. agrees to purchase Humana Inc. for $5.5 billion in stock
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Aetna to buy Prudential's health care business for $1 billion
Article Abstract:
If regulators approve the deal Prudential Insurance Co. of America will sell Prudential Health Care to tight-fisted Aetna for $1 billion. The acquisition will bring the number of large healthcare organizations from four to three; one analyst says by this time next year there will be only two. Aetna has a policy of excluding any doctors who don't work with all the Aetna plans. This policy may present a problem for some, if not many, Prudential Health Plan members who will have to switch to doctors they don't know. In other words, eventually, the Prudential plan will not have the kinder, gentler elements, but will be tight-fisted like Aetna is now.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Cardinal Health is acquiring Allegiance Hospital Supply
Article Abstract:
Cardinal Health Inc. announced that it will buy the Allegiance Corporation, a hospital supply company, for $4.5 billion in stock and assume $890 million of its debt. Allegiance representatives will promote Cardinal products, but Cardinal account managers will still make their own sales. "It's a terrific merger. It makes Cardinal a one stop shop," said Ronald Nordmann, a partner at Deerfield Management in New York. Cardinal has annual revenues of $16.5 billion, and Allegiance's annual revenues ending June 30, 1998 were $4.4 billion.
Comment:
Cardinal Health Inc. announced that it will buy the Allegiance Corporation for $4.5 billion in stock
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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