Universal American Corp. announced Wednesday that it will acquire APS Healthcare, which provides population health solutions for Medicaid programs and other health plans, for $227.5 million.
APS, based in White Plains, N.Y., develops disease management and care coordination, clinical quality and utilization review and behavioral health services. Its 400 customers include Medicaid Agencies, state and local governments, health plans, employers and labor trust groups and it serves approximately 30 government programs in 25 states and Puerto Rico covering more than 17 million members.
"We are very excited about the APS Healthcare transaction," said Richard Barasch, chairman and CEO of Universal American. "Companies who demonstrate the ability to improve cost and quality metrics, especially in government programs will thrive in the rapidly changing healthcare environment. We have been successful in our Medicare Advantage programs and APS Healthcare has been successful as well in its Medicaid programs. We are particularly focused on the emerging opportunities to service dual eligibles."
"This is a combination of two companies with very complementary skill sets," said Greg Scott, CEO of APS Healthcare. "The combined company will be an exciting growth platform to put our technology and clinical solutions to work across multiple populations. Higher quality care for those most in need of that care will result in lower cost across the healthcare system."