Ingenix, the health information technology branch of UnitedHealth Group (NYSE: UNH), announced that it will acquire Executive Health Resources, a Newtown Square, Pa. company that provides medical necessity compliance and physician medical management solutions to hospitals nationwide.
The acquisition of the medical services firm will help Ingenix serve a growing number of patients with government-sponsored health plans.
"The regulatory landscape is complex and ever-changing, and compliance has become a crucial aspect of a hospital's operational integrity," Dr. Robert Corrato, president and CEO of Executive Health Resources, said in a statement. Ingenix's data assets and advanced technologies will help Executive Health Resources deliver critical, technology-enabled intelligence to clients, he said.
UnitedHealth is reportedly paying $1.5 billion for the transaction, three people with knowledge of the talks told Bloomberg News.
Executive Health Resources would mark UnitedHealth's fifth acquisition in 2010 of a closely held company outside its insurance unit, which accounted for about 75 percent of its earnings last year, reports Bloomberg.
The transaction has yet to be approved and is expected to be finalized before the end of 2010.
For more:
- here's the Ingenix press release
- check out the Bloomberg article