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TAMPA — Healthplan Holdings Inc. has become the largest third-party administration company for insurers in health and employee benefits after a recent acquisition of Zenith Administrators Inc., according to a news release.
Zenith Administrators specializes in the management of health and pension plans.
Healthplan says it plans to merge Illinois-based Zenith with American Benefit Plan Administrators Inc., a Healthplan subsidiary that provides a similar service.
The acquisition of Zenith is part of Healthplan's strategy to increase revenues, which have doubled over the past year, a release says.
Business party outsourcing, known as third-party administration, is an industry that processes insurance and benefit claims for firms, unions and individuals. For example, if a newly formed union is seeking a health or pension plan, it would contact Zenith or ABPA, which would then make an agreement with an insurance company.
Water Street Healthcare Partners, a private equity company based in Chicago, bought Healthplan in 2008 and began working to expand the firm's revenue.
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