Coventry Health Completes Acquisition Of Mercy Health, Continues Expansion In Midwestern US

Coventry Health Care Inc. has completed its acquisition of Missouri-based MHP Inc. as it continues to expand in the Midwestern United States.

Coventry Health said in June it would buy MHP and its subsidiaries, Mercy Health Plans, which were owned by the Sisters of Mercy Health System. Financial terms weren't disclosed.

With the deal completed, Coventry Health Care (NYSE: CVH) said it now serves more than 1.2 million members in its six-state Midwest region. Attempts to speak with the company were unsuccessful.

Mercy Health Plans have about 90,000 fully insured commercial members, 60,000 self-insured commercial members and 30,000 seniors in Medicare Advantage throughout Missouri and northwest Arkansas.

The acquisition strengthens Coventry's presence in Missouri while also expanding the company's relationship with a multistate health system, said Allen F. Wise, chief executive officer of Coventry Health, in a statement.

The Maryland-based Coventry Health operates health insurance plans, Medicare plans, network rental and workers' compensation services companies. It offers risk and fee-based managed care plans and services to individuals, employers, government-funded groups and other insurers and administrators.

In January, Kansas insurance regulators approved Coventry Health's acquisition of Preferred Health Systems Insurance Co. and Preferred Plus of Kansas (BestWire, Jan. 5, 2010). Preferred Health Systems Inc. is a commercial group health plan.

During the afternoon of Oct. 5, Coventry Health's stock was trading at $21.00 a share, up 1.16% from the previous close.

Coventry Health and Life Insurance Co. currently has a Best's Financial Strength Rating of A- (Excellent).

(By Fran Matso Lysiak, senior associate editor, BestWeek: [email protected])