Coventry to buy Mercy Health Plans

July 01--Coventry Health Care said Wednesday that it had agreed to acquire Mercy Health Plans and its subsidiaries.

Mercy Health Plans, owned by Sisters of Mercy Health System and based in St. Louis, serves 180,000 members in Missouri and northwest Arkansas.

Coventry said it also is entering into a long-term provider and customer relationship with Sisters of Mercy Health System and its affiliates as part of the transaction.

Coventry and Via Christi Health announced in October 2009 that Via Christi's Preferred Health Systems insurance subsidiary would be sold to Coventry. That deal was completed earlier this year.

Preferred Health Systems, with more than 100,000 commercial group risk members and 20,000 commercial self-funded members in Kansas, is a part of Coventry Health Care of Kansas.

Coventry Health Care of Kansas serves all of Kansas and the western half of Missouri. It has offices in Kansas City, Mo., and Wichita.

Coventry Health Care is based in Bethesda, Md., and serves more than 5 million people nationwide.

Coventry CEO Allen Wise said the acquisition of Mercy Health Plans "strengthens Coventry's presence in the Missouri market while also expanding our relationship with a premier multistate health system."

The transaction is expected to close in the next 90 to 120 days. Financial terms of the transaction were not disclosed.

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