UnitedHealthcare acquires XLHealth

MINNETONKA, Minn. — A UnitedHealth Group company announced its plans to acquire a sponsor of Medicare Advantage health plans in an all-cash transaction.

UnitedHealthcare said its acquisition of XLHealth — which currently serves approximately 113,000 Medicare Advantage members in Arkansas, Georgia, Maryland, Missouri, South Carolina and Texas, and will expand its presence to Illinois, Indiana, Iowa, New Mexico, New York and Wisconsin in 2012 — will allow the former to better serve chronically ill and dual eligible members (those who are eligible for Medicare and Medicaid).

XLHealth estimates its 2012 revenues will exceed $2 billion.

“Combining XLHealth’s substantial capabilities and outstanding employees serving high-risk, chronically-ill Medicare beneficiaries with UnitedHealthcare’s breadth in both Medicare and Medicaid will significantly enhance our ability to serve older Americans,” UnitedHealthcare CEO Gail Boudreaux said. “As more Americans enter Medicare with multiple chronic conditions, including many who are also eligible for Medicaid, health plans that deliver effective complex care management can make an enormous difference in the quality of care beneficiaries receive. We greatly admire the work of the XLHealth team and look forward to leveraging XLHealth’s clinical management expertise to better serve our membership.”

UnitedHealthcare said it anticipates the deal will close during the first half of 2012 and be accretive to UnitedHealth Group's earnings per share. The transaction is subject to customary regulatory approvals, the company noted.

Interested in this topic? Sign up for our weekly Retail Health Provider e-newsletter.