Provena Health, Frankfort, Ill., will sell its 78,000-member HMO to Coventry Health Care, Bethesda, Md., for $18 million. Seven-hospital Provena has held an interest in the HMO, PersonalCare Health Management, since 1989 and bought it outright five years ago. Provena officials said the for-profit HMO generates a profit on annual revenue of approximately $200 million but would not disclose further details. The company reported assets of $38 million, liabilities of $35 million and a net operating loss of $4.4 million in the 2001 annual report of the state Department of Insurance. The system decided to sell the plan to focus on being a provider organization, they said. The sale includes a long-term provider agreement with Provena, and proceeds will be used for strategic capital needs, they said. PersonalCare operates in central and southern Illinois; Coventry insures 2 million people in the Midwest, Mid-Atlantic and Southeast. The deal is expected to close in the first quarter. -- by Cinda Becker
Ill. health system to sell HMO to Coventry
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