TAMPA, Fla., Dec. 22, 2016 /PRNewswire/ -- WellCare Health Plans, Inc. (NYSE: WCG) announced today that it signed a definitive agreement to acquire certain assets, including Medicaid membership and certain provider contracts, from Phoenix Health Plan (PHP), a wholly owned managed care subsidiary of Tenet Healthcare. PHP provides health benefits primarily to more than 50,000 Medicaid beneficiaries as of Dec. 1, 2016 in Maricopa County, Arizona, the state's largest geographic service area.
"We are pleased to announce a second acquisition in the state of Arizona this year. This transaction will complement our pending acquisition of Care1st Health Plan Arizona and further strengthen our presence in the state," said Ken Burdick, WellCare's chief executive officer. "We look forward to partnering with the state and local providers to deliver high-quality, cost-effective health care solutions to help Arizona's Medicaid beneficiaries live better, healthier lives."
WellCare will work with PHP and Arizona Health Care Cost Containment System (AHCCCS) to ensure a smooth transition for members.
The transaction is expected to close by the second quarter of 2017, pending regulatory approvals, and other customary closing conditions. The financial terms of the transaction are not being disclosed. The transaction is expected to be funded with available cash on hand.
About WellCare Health Plans, Inc.
Headquartered in Tampa, Fla., WellCare Health Plans, Inc. (NYSE: WCG) focuses exclusively on providing government-sponsored managed care services, primarily through Medicaid, Medicare Advantage and Medicare Prescription Drug Plans, to families, children, seniors and individuals with complex medical needs. The company served approximately 3.8 million members nationwide as of September 30, 2016. For more information about WellCare, please visit the company's website at www.wellcare.com.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains "forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," "continue," "could," "may," "might," "potential," "predict," "project," "seek," "should," or "will," or the negative thereof and similar expressions are forward-looking statements. For example, statements regarding the number of members to be acquired and the timing and satisfaction of closing conditions of the transaction, including regulatory approval, contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause WellCare's actual future results to differ materially from those projected or contemplated in the forward-looking statements. These risks and uncertainties include, but are not limited to, the timing and ability to satisfy closing conditions for the transaction, including receipt of regulatory approvals, the number of members that will transition to WellCare upon closing, WellCare's ability to effectively execute and integrate acquisitions, WellCare's ability to address operational challenges related to new business, WellCare's progress on top priorities such as improving health care quality and access, ensuring a competitive cost position, and delivering prudent, profitable growth, WellCare's ability to effectively estimate and manage growth, potential reductions in Medicaid and Medicare revenue, WellCare's ability to estimate and manage medical benefits expense effectively, including through its vendors, its ability to negotiate actuarially sound rates, the appropriation and payment by state governments of Medicaid premiums receivable, WellCare's ability to access capital and WellCare's ability to comply with the terms of the Corporate Integrity Agreement. Given the risks and uncertainties inherent in forward-looking statements, any of WellCare's forward-looking statements could be incorrect and investors are cautioned not to place undue reliance on any of our forward-looking statements.
Additional information concerning these and other important risks and uncertainties can be found in the company's filings with the U.S. Securities and Exchange Commission ("SEC"), included under the captions "Forward-Looking Statements" and "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2015, Quarterly Report on Form 10-Q for the quarter ended September 30, 2016 and other filings by WellCare with the SEC, which contain discussions of WellCare's business and the various factors that may affect it. Subsequent events and developments may cause actual results to differ, perhaps materially, from WellCare's forward-looking statements. WellCare's forward-looking statements speak only as of the date on which the statements are made. WellCare undertakes no duty, and expressly disclaims any obligation, to update these forward-looking statements to reflect any future events, developments or otherwise.
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SOURCE WellCare Health Plans, Inc.