SOURCE: Coventry Health Care, Inc.

October 01, 2010 11:54 ET

Coventry Health Care Completes Acquisition of MHP, Inc.

BETHESDA, MD--(Marketwire - October 1, 2010) - Coventry Health Care, Inc. (NYSE: CVH) announced today that it has completed its previously announced acquisition of MHP, Inc. and its subsidiaries ("Mercy Health Plans"), which were wholly-owned by Sisters of Mercy Health System ("Mercy"). With the addition of Mercy Health Plans, Coventry now serves more than 1.2 million members in its six-state Midwest region. Coventry has also entered into a long-term provider and customer relationship with Mercy and its affiliates as part of the transaction. 

"I am pleased to announce the completion of this transaction which strengthens Coventry's presence in the Missouri market while also expanding our relationship with a premier multi-state health system," said Allen F. Wise, chief executive officer of Coventry. "We share a view of developing cost-effective healthcare models that improve quality through innovative care coordination practices and improved patient management."

As previously reported, the transaction is expected to be slightly accretive to earnings in 2011 and financial terms of the transaction were not disclosed.

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are defined as statements that are not historical facts and include those statements relating to future events or future financial performance. Actual performance may be significantly impacted by certain risks and uncertainties including those described in Coventry's Annual Report on Form 10-K for the year ended December 31, 2009 and Coventry's Form 10-Q for the quarter ended June 30, 2010. Coventry undertakes no obligation to update or revise any forward-looking statements.

Coventry Health Care (www.coventryhealthcare.com) is a diversified national managed healthcare company based in Bethesda, Maryland, operating health plans, insurance companies, network rental and workers' compensation services companies. Coventry provides a full range of risk and fee-based managed care products and services to a broad cross section of individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators.

Contact Information

  • Contact:
    John Stelben
    Interim Chief Financial Officer
    (301) 581-5729

    Drew Asher
    SVP, Corporate Finance
    (301) 581-5717