Managed-care company Coventry Health Care, Bethesda, Md., said it has signed a definitive agreement to purchase Preferred Health Systems, Wichita, Kan. The 120,000-member health plan is a wholly owned subsidiary of Via Christi Health, Wichita; Via Christi recently dropped the word “System” from its name.
Coventry to buy Preferred Health Systems
Financial terms of the sale were not disclosed, although Coventry said that the acquisition would be neutral to earnings in the first year. The deal is expected to close within 90 to 120 days, pending regulatory approvals.
The definitive agreement includes a provision for Coventry and Via Christi to partner on innovative services that transform healthcare delivery, Via Christi said. Preferred Health Systems was started in 1993 by local physicians and the two Wichita hospitals that merged to form Via Christi. The Roman Catholic system became the sole owner of Preferred in 1999.
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