Grand Blanc, Mich.-based McLaren Health Care signed a definitive agreement to acquire nonprofit health maintenance organization MDwise.
Under the transaction, Indianapolis-based MDwise's 360,000-plus members will be served by McLaren Health. The 12-hospital system also sports its own health plan, McLaren Health Plan. Collectively, the two provider-sponsored health plans will cover more than 620,000 lives.
Financial details of the deal were not released. MDwise generates more than $1.5 billion in revenue each year. McLaren will retain MDwise's Indiana operations.
MDwise's board of directors decided to seek a buyer earlier this year. In March, MDwise announced it would exit Indiana's Medicaid program, laying off 79 workers in the process.
The McLaren-MDwise transaction is subject to regulatory review. The deal is slated to reach completion Dec. 31.
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