Botsford Health Care Continuum, Farmington Hills, Mich., has agreed to sell its 11,300-member Medicaid HMO to rival Cape Health Plan, Southfield, Mich., in order to refocus on its core business of providing medical care. Financial terms weren't disclosed. Botsford Health Plan, founded in 1996, lost $1.7 million on revenue of $22.4 million in 2003. The deal, expected to close by July, would bring Cape's total Medicaid membership to 77,000. Cape earned $3.9 million on $120.6 million in revenue last year. The deal follows the recent sales of several other provider-owned health plans nationwide, including that of another Southfield, Mich.-based Medicaid HMO, 96,000-member Great Lakes Health Plan, to AmeriChoice Corp. in February. UnitedHealth Group purchased Appleton, Wis.-based Touchpoint Health Plan earlier this month. Botsford Health Care Continuum owns 330-bed Botsford General Hospital. -- by Laura B. Benko
Botsford sells Medicaid HMO to rival Cape
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