Priority Health to acquire Physicians Health Plan of Northern Indiana
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Michigan-based Priority Health, a health plan serving more than 1.3 million members, says it will acquire Fort Wayne-based Physicians Health Plan of Northern Indiana (PHPNI), currently serving more than 52,000 members in Indiana and Ohio.
Terms of the deal announced this week are not being publicly disclosed.
“We look forward to providing high-quality, affordable coverage to the customers and members of PHPNI,” Praveen Thadani, president of Priority Health, said in a news release. “Our focus will remain on whole-person health and an exceptional member experience.”
Negotiations are underway and are expected to close before the end of the year after required approvals are completed. Products and coverage offered by the companies are not expected to see any significant changes.
“Joining Priority Health has great potential to offer additional resources and innovation to PHPNI customers and members,” Gary Shearer, CEO of PHPNI, said. “We expect this transaction will benefit the communities and businesses we serve.”
A spokesperson for Physicians Health Plan told Inside INdiana Business that 100% of the net proceeds from the sale will go entirely to the PHP Foundation, dedicated to building healthier communities by addressing the health and wellness needs of low-income, high risk individuals in northern Indiana.
Cain Brothers, a division of KeyBanc Capital Markets, is serving as exclusive financial advisor and Faegre Drinker Biddle & Reath LLP is serving as legal counsel to PHPNI in this transaction. Taft Stettinius & Hollister is serving as external legal counsel to Priority Health.