Inova Health System, based in Falls Church, Va., officially acquired Amerigroup Virginia, a Medicaid managed care subsidiary of Amerigroup Corp.
Amerigroup and Inova completed the sale in November, and the maneuver divests all of Amerigroup's managed care operations in Virginia.
The deal was also part of a stipulation from the Department of Justice. In July, health insurer WellPoint announced it had acquired Amerigroup for $4.9 billion. However, the DOJ thought the move could create a monopoly in northern Virginia, where WellPoint and Amerigroup are the only two Medicaid managed care plans, according to a Washington Business Journal report.
According to a separate Washington Business Journal report, Inova executives believe its new Medicaid plan could bring in $167 million in additional revenue per year. In 2012, Inova recorded roughly $2.4 billion in revenue.
Amerigroup and Inova completed the sale in November, and the maneuver divests all of Amerigroup's managed care operations in Virginia.
The deal was also part of a stipulation from the Department of Justice. In July, health insurer WellPoint announced it had acquired Amerigroup for $4.9 billion. However, the DOJ thought the move could create a monopoly in northern Virginia, where WellPoint and Amerigroup are the only two Medicaid managed care plans, according to a Washington Business Journal report.
According to a separate Washington Business Journal report, Inova executives believe its new Medicaid plan could bring in $167 million in additional revenue per year. In 2012, Inova recorded roughly $2.4 billion in revenue.
More Articles on Hospitals and Health Plans:
Florida Hospital to Launch Health Plan in 2014
Detroit Medical Center Buys ProCare Health Plan
Cleveland Clinic Strikes Bundled Payment Deal With Boeing