Amerigroup Corp., Virginia Beach, Va., agreed to acquire St. Augustine Medicaid, the Florida Medicaid unit of AvMed Health Plan, Miami, for $10 million. The addition of 30,000-member St. Augustine boosts Amerigroup's Florida Medicaid membership to 220,000 and is expected to add 5 cents to 10 cents to per-share earnings and $40 million to revenue in 2004. The deal is expected to close in the third quarter, pending regulatory approval. The acquisition is part of Amerigroup's expansion strategy, which involves entering a new market every 18 months and adding one or two new health plans to its existing markets every year. Amerigroup, which covers 591,000 members in five states and the District of Columbia, entered the Florida Medicaid market in January, when it completed its acquisition of 190,000-member PHP Holdings, Coral Gables, Fla., and its Physicians Healthcare Plans subsidiary for $121 million. -- by Laura B. Benko
Medicaid HMO Amerigroup continues expansion
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