Faced with mounting financial woes, AmCare Health Plans, Houston, said it has agreed to sell its Texas and Louisiana operations to a partnership of two out-of-state HMOs, Florida-based MedFirst Corp. and Albuquerque-based Health Care Horizons. The deal is subject to approval by insurance regulators in both states. Financial terms were not disclosed. AmCare has about 75,000 members in Texas and 28,000 members in Louisiana. How the subsidiaries would be divided between the two prospective buyers has not yet been determined, a Health Care Horizons spokesman said. Earlier this month, Texas regulators placed AmCare under supervision because of concerns about its deteriorating financial health. Also this month, AmCare said it would closes its 40,000-member HMO in Oklahoma by Oct. 1 after state health department officials recommended against renewing the plan's operating license. -- by Laura B. Benko
Troubled AmCare to sell Texas, La. operations
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