Vista Health News
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COVENTRY
HEALTH CARE AGREES TO ACQUIRE VISTA
HEALTHPLANS
Sunrise health plan to become Florida
base for national managed care company
Bethesda, Md. (July 9, 2007) — Coventry Health
Care, Inc. today announced that it has signed
a definitive agreement to acquire
privately-owned Florida Health Plan
Administrators, LLC, owner of Vista
Healthplans. The Sunrise-based diversified
health plan serves approximately 295,000
members.
“Coventry is delighted to
enter the Florida market and expand its
national footprint,” said Thomas P. McDonough,
president of Coventry. “Vista has established
itself as a strong local-based health plan
serving commercial employers, individuals and
governmental agencies. Coventry and the local
Vista management team will team up to bring
Coventry’s enhanced technology, its full suite
of products and its financial strength to the
Florida marketplace, creating a strong local
presence with national stability. Coventry’s
balance sheet, with over $6 billion in assets,
will stand behind Vista.”
Coventry
will acquire Vista Healthplans for $685.0
million in an all-cash transaction expected to
close in 90 to 180 days,subject to closing
conditions, regulatory and other customary
approvals. Coventry will continue operations
from Vista’s Sunrise headquarters and will tap
the local expertise of the Vista management
team. Vista will operate as a wholly-owned
subsidiary of publicly traded Coventry Health
Care, Inc.
“This was an excellent
decision for Vista’s major stakeholders – our
employees, providers, customers and members,”
said Steven M. Scott, M.D., chief executive
officer of Vista. “The transaction will allow
Vista to offer additional products in the
marketplace, increasing our competitive
strength and ability to gain new customers.”
This press release contains
forward-looking statements made pursuant to
the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995.
Forward-looking statements are defined as
statements that are not historical facts and
include those statements relating to future
events or future financial performance. Actual
performance may be significantly impacted by
certain risks and uncertainties, including
those described in Coventry’s Annual Report on
Form 10-K for the year ended December 31, 2006
and Coventry’s Form 10-Q for the quarter ended
March 31, 2007. Coventry undertakes no
obligation to update or revise any
forward-looking statements.
Coventry
Health Care
(www.cvty.com) is a diversified national
managed healthcare company based in Bethesda,
Maryland, operating health plans, insurance
companies, network rental and workers’
compensation services companies. Through its
Commercial Business, Individual Consumer &
Government Business, and Specialty Business
Divisions, Coventry provides a full range of
risk and fee-based managed care products and
services to a broad cross section of
individuals, employer and government-funded
groups, government agencies, and other
insurance carriers and administrators.
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