Aetna has completed its $500 million acquisition of Medicity, a Salt Lake City-based health information exchange technology company.
The Hartford, Conn.-based health insurer announced Monday that it had completed the deal, completing a transaction that was first announced on December 7, 2010. Medicity will operate as a separate business within Aetna and retain its leadership structure.
"This acquisition will enable Aetna to offer a set of convenient, easy-to-access technology solutions for physicians, hospitals and other healthcare providers," said Mark T. Bertolini, Aetna's president and CEO, in a December 7 press release. "Strategically, we believe this acquisition will enhance Aetna's capabilities and accelerate our growth in the health information technology and health information exchange space."
Aetna is one of several insurers looking to diversify in the face of health reforms that could result in smaller profit margins for insurers.
Medicity offers a broad range of products and services that enable health systems, hospitals, physician practices and health information exchanges to securely access and exchange health care information.
Shares of Aetna jumped 46 cents to $30.97 late Monday morning.
Aetna, billed as the third largest insurer in the country, has about 35.4 million members, including employer groups, individuals, college students, part-time and hourly workers, health plans, governmental units, government-sponsored plans, labor groups and expatriates.