Aetna has entered into an agreement to buy New York-based third party administrator Prodigy Health Group in a deal valued at roughly $600 million.
Aetna to buy Prodigy Health Group
Prodigy Health Group is an independent third party administrator of self-funded healthcare plans, with 600,000 medical members and 450,000 pharmacy members, according to an Aetna news release.
"We believe that there are a number of positive synergies to be gained from our acquisition of Prodigy Health Group, including leveraging our provider networks and (pharmacy benefit management) capabilities to grow membership and enhance our ability to develop customized networks in accountable care models," said Joseph Zubretsky, Aetna's senior vice president and chief financial officer, in the release.
The transaction is expected to close in the second half of 2011. After the close of the deal, Prodigy Health Group will operate as a separate subsidiary of Aetna and will retain its management and brand.
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