The acquisition agreement signed June 30 between Bethesda, Md.-based Coventry Health Care Inc. and Sisters of Mercy Health System subsidiary Mercy Health Plans was completed Oct. 1. Coventry now owns Mercy Health Plans.
The agreement gave both parties 90 to 120 days to finalize the deal. Financials terms of the sale were not disclosed, according to an Oct. 1 St. John's news release.
MHP - which has its headquarters in Chesterfield and was established in 1984 - offered insurance in partnership with St. John's Health System. Its Springfield office is located at 4520 S. National Ave.
MHP individual and company health plan coverage will remain the same throughout the duration of the current contract periods, according to the release.
With the addition of MHP's 180,000 members in Missouri and Arkansas, the acquisition pushes Coventry's membership number to more than 1.2 million.
"I am pleased to announce the completion of this transaction which strengthens Coventry's presence in the Missouri market while also expanding our relationship with a premier multi-state health system," Coventry CEO Allen Wise said in an Oct. 1 Coventry news release.
According to the release, as part of the transaction, Coventry also has entered into a long-term provider and customer relationship with Mercy and its affiliates.
"We share a view of developing cost-effective health care models that improve quality through innovative care coordination practices and improved patient management," Wise said.
The acquisition is expected to increase Coventry's 2011 earnings, the release said. Coventry (NYSE: CVH) reported $13.9 billion in 2009 revenue.
The majority of of MHP's approximately 420 employees will now work for Coventry,
according to Springfield Business Journal coverage. Of the 420 employees, 140 are in Springfield, 270 are in St. Louis and eight are in Arkansas, according to the
St. Louis Business Journal.
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