WellCare Management Group said last week it has closed the sale of its managed-care business to buyers in Florida and New York.
GHI, New York, purchased the commercial business of Kingston, N.Y.-based WellCare for $5 million.
Separately, Kiran Patel, M.D., the Tampa, Fla.-based buyer, purchased $5 million of newly issued preferred stock in the troubled company. A Patel affiliate will manage the rest of WellCare's New York operations and its Connecticut HMO.
The Connecticut plan remains under state supervision for failing to satisfy statutory net worth requirements. The deal prohibits any change in control pending a public hearing and state regulatory approval.