News in brief - Jan. 3/10, 2005

Humana acquires CarePlus - PacifiCare closes acquisition - Pediatrix grows

Humana acquires CarePlus

Louisville, Ky.-based Humana Inc. announced in December 2004 it intends to acquire CarePlus Health Plans of Florida, a provider of Medicare HMO health plans in Miami-Dade, Palm Beach and Broward counties.

Humana will pay about $408 million plus any excess statutory surplus that it gains at the time of the closing, the company said.

CarePlus has nearly 50,000 members in South Florida, with particular strength in the Miami area's Hispanic market. Humana already has 230,000 Medicare members on its Medicare Advantage rolls in Florida, more than half of whom live in South Florida.

Humana will take over CarePlus's 10 CAC-Florida Medical Centers, which are outpatient clinics and their pharmacies, and also PrescribIT Rx, a pharmacy benefits management subsidiary. CarePlus was part of PHP Holdings Inc. of Florida. Virginia Beach, Va.-based Amerigroup Corp. bought PHP, a managed care company serving Medicaid recipients and children in the State Children's Health Insurance Program, in 2002. It did not acquire CarePlus operations.

PacifiCare closes acquisition

Cypress, Calif.-based PacifiCare Health Systems in December 2004 completed its buyout of Green Bay, Wis.-based American Medical Security Group for $505 million in cash. American Medical serves the small group and individual health insurance markets in 33 states and the District of Columbia, and has a commercial membership of about 314,000.

Pediatrix grows

Pediatrix Medical Group Inc., a Sunrise, Fla.-based company that specializes in newborn and maternal-fetal care, acquired the assets of three physician practices in November and December 2004.

The group acquired a six-physician neonatology group in McAllen, Texas, in November 2004. It followed that up in December with acquisitions of another neonatal group in Jacksonville, Fla. and a pediatric cardiology group in Austin, Texas.

Overall, Pediatrix acquired the assets of 12 physician groups in 2004, including ones that focus on neonatal intensive care, maternal-fetal medicine, pediatric intensive care, and pediatric cardiology.