Amerigroup Corp. announced that it has entered into a definitive agreement to sell Amerigroup Virginia, Inc. to Inova.
According to a release, the sale,which is conditioned on the closing of the previously announced Amerigroup and Wellpoint transaction,will divest all of Amerigroup's managed care operations in the Commonwealth of Virginia.
As previously announced, Amerigroup and WellPoint each received a request for additional information (second request) from the United States Department of Justice (DOJ) in connection with the DOJ's review of WellPoint's pending acquisition of Amerigroup. The second request focuses on Amerigroup's operations in the Commonwealth of Virginia, and both Amerigroup and WellPoint have worked and continue to work cooperatively with the DOJ staff and representatives of the Commonwealth of Virginia. The closing of the Amerigroup Virginia, Inc. transaction is subject to the receipt of customary regulatory approvals and standard closing conditions.
The sale of Amerigroup Virginia, Inc. will not require any change of terms or amendment to the WellPoint merger agreement and the sale is expected to close concurrently with the WellPoint acquisition of Amerigroup, currently expected to occur in the fourth quarter of 2012. The closing of the Amerigroup and WellPoint transaction remains subject to the receipt of certain regulatory approvals and standard closing conditions, including the approval of Amerigroup's stockholders.
Amerigroup, a Fortune 500 Company, coordinates services for individuals in publicly funded health care programs. Currently serving more than 2.7 million members in 13 states nationwide, Amerigroup expects to expand operations to its 14th state, Kansas, as a result of previously awarded state contract. Amerigroup is dedicated to offering real solutions that improve health care access and quality for its members, while proactively working to reduce the overall cost of care to taxpayers.
Amerigroup Virginia, Inc. is a wholly owned subsidiary of Amerigroup Corp. As of September 1, Amerigroup Virginia, Inc. serves approximately 55,000 Temporary Assistance for Needy Families, Children's Health Insurance Program and Supplemental Security Income/ Aged, Blind and Disabled members through the Medallion II and Family Access to Medical Insurance Security programs.
Inova is a not-for-profit health care system located in the Washington, D.C. metropolitan area, serving over two million people with over 1,700 licensed beds based in Northern Virginia. Inova consists of five hospitals including the area's only Level 1 Trauma Center and Level 3 Neonatal Intensive Care unit.
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