Aetna said it entered a deal to acquire Medicity, a health information exchange technology company, for approximately $500 million. Medicity, based in Salt Lake City, will operate as a separate business and keep its leadership, according to a news release from the Hartford, Conn.-based insurer announcing the deal.
Aetna to acquire Medicity
More than 760 hospitals and 125,000 doctors use Medicity technology, according to the release. The acquisition is expected to close in January 2011, an Aetna spokesman said. The deal is subject to customary antitrust regulatory approval, the insurer said.
The prospective partners rapidly reached a deal, said J. Kipp Lassetter, the physician who founded Medicity, in a letter posted on the company's website. "Today's announcement is the result of a swift process—just a few short weeks from inquiry to agreement," he said. "Had you asked me just a month ago if I thought a healthcare benefits company could be the ideal partner to expand and enhance Medicity's mission to be the preeminent connected health platform, I would have answered with some skepticism."
Aetna described Medicity's presence in developing state and regional health information exchanges as "substantial" and said the company's technology would allow for new business development.
Aetna CEO and President Mark Bertolini said in the news release that the acquisition would accelerate the insurer's growth in health IT and health information exchange markets.
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