Amerigroup Corp., Virginia Beach, Va., has agreed to pay $121 million to acquire PHP Holdings, Coral Gables, Fla., a 184,000-member Medicaid HMO. The purchase includes PHP's Physicians Healthcare Plans subsidiary but not its CarePlus Health Plan, which will continue to provide Medicare and commercial products. If completed, the acquisition would boost Amerigroup's membership to about 722,000 people nationwide and increase its 2003 revenue by a projected $300 million and its 2003 per-share earnings by a projected 25 cents to 30 cents. The deal is scheduled to close in early 2003 pending regulatory approval. PHP would be Amerigroup's eighth acquisition since it was founded in 1994. In April, the company bought 28,500-member Capital Community Health Plan, Washington. Amerigroup operates Medicaid HMOs in the District of Columbia, Illinois, Maryland, New Jersey and Texas. -- by Laura B. Benko
Amerigroup keeps up expansion with Fla. deal
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