HealthSpring To Pay $545M For Bravo Health Medicare Company With Profits of 1 Billion in 2009-Over 800 Million in 2010 Thus Far
Posted Aug 27 2010 11:29am
Bravo also had profits of over 800 Million in the first half of 2010 and HealthSpring is in the same business with Medicare coverage. In 2012 cuts from Medicare become effective so there’s a good year and a half left at present rates. Bravo Healthcare is a venture backed company and there was talk earlier of a possible IPO this year.
Bravo also use electronic services from Emdeon to check for eligibility. Emdeon is another 3rd party company that supplies business intelligence software to hospitals, providers, etc. in the area of claim payments and more. Here’s a part of the package is that is marketed, “ Denial Manager”. You might want to read up and check this out. BD
HealthSpring Inc. (HS) has agreed to acquire closely held Medicare-coverage provider Bravo Health Inc. for $545 million, bolstering the health insurer's position in the changing Medicare Advantage market.
The U.S. health-care overhaul calls for $136 billion in cuts over the next decade to government-subsidized Medicare Advantage health plans that private insurers offer to seniors. In acquiring a smaller peer, HealthSpring, nonetheless, is expanding its exclusive focus in the area and expects to benefit from operating savings.
Shares recently traded up 8.3% to $19.92 on word of the deal, which the company said will make it the largest U.S. managed-care company focused exclusively on Medicare Advantage. After the deal, HealthSpring will provide Medicare Advantage plans to some 300,000 members in 11 states and Washington, D.C., as well as Medicare prescription-drug benefits to 700,000 members nationwide.