Health Care Service Corp. announced it has entered an agreement to acquire TMG Health, a provider of business process outsourcing for Medicare, Medicaid and group retiree health plans.
Chicago-based HCSC operates Blue Cross and Blue Shield plans in Illinois, New Mexico, Oklahoma and Texas and wants to bring TMG Health into the fold for its regulatory expertise in doing business with the government. We are excited about gaining immediate access to the expertise we need to pursue growth opportunities in this area, HCSC President and Chief Operating Officer Pat Hemingway Hall said in the release.
The Federal Trade Commission today said antitrust authorities wont challenge the deal. An HCSC spokesman declined to disclose the financial terms of the acquisition. TMG Health, which serves nearly 2 million Medicare and Medicaid beneficiaries and is based in King of Prussia, Pa., would be a wholly owned subsidiary that operates as an independent organization with a separate board of directors, and founder Jack Tighe will serve on the board and continue in his role as president and chief executive officer, according to the release. -- by Gregg Blesch