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McLaren Health Care To Acquire Indiana Health Plan

Published on Thursday, November 02, 2017

GRAND BLANC, Michigan and INDIANAPOLIS, Indiana (November 2, 2017) -- McLaren Health Care has signed a definitive agreement to acquire MDwise, a non-profit HMO that serves more than 360,000 Indiana individuals and families and generates in excess of $1.5 billion in annual revenue. The transaction, which is subject to state and federal regulatory review and other closing conditions, is expected to be complete by December 31, 2017. Upon completion of the purchase, total revenues for McLaren Health are expected to approach $6 billion annually.

MDwise will become part of McLaren Health Care, a Michigan-based health system that owns and operates 12 acute care hospitals and McLaren Health Plan, a Michigan HMO that provides health care benefits to more than 260,000 commercial, Medicaid and Medicare beneficiaries in Michigan. Once the transaction is complete, MDwise and McLaren Health Plan will collectively serve more than 620,000 individuals, making it one of the region’s largest provider-sponsored health plans.

“This expansion allows us to leverage the success and strength of our health plan expertise, and brings significant benefits to the individuals and families served by MDwise,” said Philip Incarnati, President and CEO of McLaren Health Care. “In addition to providing a platform for future growth in Indiana, expanding our health plan operations allows us to create greater economies of scale and new opportunities to share data and best practices, all of which will improve the experience of both members and network providers.”

McLaren will maintain MDwise’s Indiana operations, and MDwise members will not experience any changes to their benefits or provider network. MDwise will continue to offer the same high quality services currently available under its Hoosier Healthwise and Healthy Indiana Plans.

The MDwise board of directors made the strategic decision earlier this year to identify a buyer for the health plan whose core capabilities included managing risk-bearing entities.

“After a lengthy selection process, we are confident McLaren Health Care will be an ideal choice to acquire MDwise,” said Jim Parker, President and CEO of MDwise. “With their strong track record operating a successful health plan in Michigan, they have the expertise needed to assist MDwise to succeed in a rapidly changing managed care market while maintaining a high level of service to our members and provider partners.”

About McLaren

McLaren Health Care, headquartered in Grand Blanc, Michigan, is a fully integrated health network committed to quality, evidence-based patient care and cost efficiency. The McLaren system includes 12 hospitals, ambulatory surgery centers, imaging centers, a 450-member employed primary care physician network, commercial and Medicaid HMOs covering more than 260,000 lives, home health and hospice providers, retail medical equipment showrooms, pharmacy services, and a wholly owned medical malpractice insurance company. McLaren operates Michigan’s largest network of cancer centers and providers, anchored by the Barbara Ann Karmanos Cancer Institute, one of only 45 National Cancer Institute-designated comprehensive centers in the U.S. McLaren has 24,000 employees and more than 52,000 network providers. Its operations are housed in more than 350 facilities serving the entire Lower Peninsula of the state of Michigan along with a portion of the Upper Peninsula.