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Tampa-based WellCare Health Plans Inc. is planning to acquire a pair of Arizona health care benefit providers that are part of the Care1st Health Plan for $157.5 million.
Care1st Health Plan Arizona Inc. and OneCare by Care1st Health Plan of Arizona Inc. are managed care companies that provide Medicaid and Medicare benefits to roughly 114,000 people in two of Arizona's largest geographic areas.
WellCare expects to close on the transaction by the first quarter of next year, pending regulatory approvals.
The acquisition is expected to positively impact WellCare's earnings per share within the first year after the closing. WellCare currently has about 3.8 million customers.
The company intends to share further information about the purchase during its next scheduled earnings conference call, on Nov. 1.
“Our acquisition of Care1st Arizona provides us with an opportunity to expand our footprint into Arizona's growing Medicaid and Medicare markets,” says Ken Burdick, Wellcare's CEO, in a statement.
“Care1st Arizona is a well regarded, quality health plan that has served government-sponsored programs in Arizona for more than 13 years. Its focus on community-based relationships and integrated delivery of medical care and social services aligns with our approach to providing improved health outcomes for low-income families, children, the disabled, seniors and individuals with complex medical needs.”
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