In a deal worth about $560 million, UnitedHealth Group, Minneapolis, plans to acquire AmeriChoice, Vienna, Va., a privately held company serving 376,748 Medicaid patients in New Jersey, New York and Pennsylvania. UnitedHealth?s offer includes about 5.5 million shares of UnitedHealth stock and the assumption of $30 million of debt. The deal is subject to regulatory approval and expected to close in the fourth quarter. The combined Medicaid HMO businesses, which include 637,337 UnitedHealth subscribers, would continue under the AmeriChoice name and will be led by Anthony Welters, the chief executive of AmeriChoice.
UnitedHealth to buy Medicaid HMO for $560 million
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