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Priority Health, a Michigan-based health plan serving more than 1.3 million members, announced it will acquire Fort Wayne-based Physicians Health Plan of Northern Indiana (PHPNI), which currently serves more than 52,000 members in Indiana and Ohio.
Terms of the deal announced this week were not disclosed.
“We look forward to providing high-quality, affordable insurance to our PHPNI customers and members,” Priority Health president Pravin Thadani said in a news release. “We remain focused on whole-person health and an exceptional member experience.”
Negotiations are currently ongoing and are expected to close by the end of the year, subject to necessary approvals. No significant changes to the products and coverage offered by either company are expected.
“Joining Priority Health has great potential to provide PHPNI customers and members with additional resources and innovation,” said PHPNI CEO Gary Shearer. “We look forward to this transaction benefiting the communities and businesses we serve.”
A Physicians Health Plan spokesperson told Inside Indiana Business that 100 percent of the net proceeds from the sale will be donated in full to the PHP Foundation, which works to address the health and wellness needs of low-income, at-risk populations in Northern Indiana and build healthier communities.
Cain Brothers, a division of KeyBanc Capital Markets, is acting as exclusive financial advisor to PHPNI and Faegre Drinker Biddle & Reath LLP is acting as legal advisor to PHPNI in the transaction. Taft Stettinius & Hollister is acting as outside legal advisor to Priority Health.
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