Aetna Acquires Coventry Health for $7.3 Billion | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Aetna Acquires Coventry Health for $7.3 Billion

August 20, 2012
by Mark Hagland
| Reprints
Acquisition expands the health insurer’s “footprint” in the Medicare Advantage and Medicaid managed care markets

With its acquisition of the Bethesda, Maryland-based Coventry Health, the Hartford-based Aetna expands its “footprint” in the Medicare Advantage and Medicaid managed care markets, and unites two large health insurers for a total of nearly 42 million covered lives across the United States

The Hartford, Conn.-based Aetna announced on Aug. 20 that it had entered into a definitive agreement to acquire the Bethesda, Md.-based Coventry Health Care, Inc., for $7.3 billion, through a mix of stock, cash, and borrowing.

The deal, according to a press release issued Monday morning by Aetna, will help to grow Aetna’s Medicare Advantage business, expand Aetna’s footprint in the managed Medicaid business, improve Aetna’s positioning in “consumer-based commercial lines of business, including middle markets, small group and individual,” and “add a low-cost administrative platform and value-based provider networks.”

“Integrating Coventry into Aetna will complement our strategy to expand our core insurance business, increase our presence in the fast-growing government sector, and expand our relationships with providers in local geographies,” said Mark T. Berolini, Aetna’s chairman, CEO and president, in a statement in that press release. “Coventry has distinct capabilities and a local market focus that will accelerate our efforts to bring simpler, more affordable products to consumer insurance exchanges in 2014 and beyond.”

Coventry Health Care currently serves 5 million members nationwide, with members in every state, and substantial Medicare Advantage and Medicaid managed care programs. Aetna has 36.7 million covered lives in the U.S.The acquisition is expected to close sometime in mid-2013.




NewYork-Presbyterian, Walgreens Partner on Telemedicine Initiative

NewYork-Presbyterian and Walgreens are collaborating to bring expanded access to NewYork-Presbyterian’s healthcare through new telemedicine services, the two organizations announced this week.

ONC Releases Patient Demographic Data Quality Framework

The Office of the National Coordinator for Health IT (ONC) developed a framework to help health systems, large practices, health information exchanges and payers to improve their patient demographic data quality.

AMIA, Pew Urge Congress to Ensure ONC has Funding to Implement Cures Provisions

The Pew Charitable Trusts and the American Medical Informatics Association (AMIA) have sent a letter to congressional appropriators urging them to ensure that ONC has adequate funding to implement certain 21st Century Cures Act provisions.

Former Michigan Governor to Serve as Chair of DRIVE Health

Former Michigan Governor John Engler will serve as chair of the DRIVE Health Initiative, a campaign aimed at accelerating the U.S. health system's transition to value-based care.

NJ Medical Group Launches Statewide HIE, OneHealth New Jersey

The Medical Society of New Jersey (MSNJ) recently launched OneHealth New Jersey, a statewide health information exchange (HIE) that is now live.

Survey: 70% of Providers Using Off-Premises Computing for Some Applications

A survey conducted by KLAS Research found that 70 percent of healthcare organizations have moved at least some applications or IT infrastructure off-premises.