WellPoint announced today it has completed its acquisition of CareMore Health Group, a provider of Medicare Advantage plans and Special Needs Plans designed for the chronically ill in select California, Nevada and Arizona markets.
The closing of the deal was quicker than expected, with both companies targeting the end of the year to close the deal, which was announced in early June.
"We are extremely pleased to finalize our agreement even sooner than anticipated," said Angela F. Braly, chair, president and CEO of WellPoint in a press release announcing the completion of purchase. "This means we can now focus on the most exciting part of the acquisition, which is expanding CareMore's proven system of providing Medicare recipients with high-quality, personalized care that improves their lives and well-being."
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The CareMore model, which currently serves roughly 54,000 members across the three states in which it operates, blends its Medicare Advantage health plans with a clinical component, via its 26 Neighborhood Care Centers, to take an approach to care coordination and disease management at its company-owned clinics. WellPoint intends to expand the CareMore model for its Medicare program both within its current area of operation as well as additional markets across the country.
"WellPoint's faith in CareMore's model really validates our work," said Alan Hoops, who will remain as CEO of CareMore. "We look forward to deploying programs like Healthy Start and our Neighborhood Care Centers to benefit more seniors as part of this larger organization."
According to the June press release announcing the deal, CareMore's mission "is to improve the overall lives and wellbeing of seniors by providing innovative, focused healthcare approaches to the complex problems of aging, while protecting precious financial resources of seniors and the Medicare Program."
Its care center clinics are staffed with physicians, nurse practitioners, medical assistants, podiatrists, physical therapists, nutritionists, psychologists and case managers. The company, now a wholly owned operating division of WellPoint will be headquartered at its current location in Cerritos, Calif.
WellPoint said it expects the acquisition will be earnings neutral for 2011, as the company invests additional money to expand the CareMore business, with earnings accretion expected in years two and beyond.
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