Posted on Tue, Feb. 02, 2010

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Coventry acquisition of PHS now complete

BY KAREN SHIDELER

The Wichita Eagle

Coventry Health Care said Monday that it had completed its acquisition of Preferred Health Systems, the wholly owned subsidiary of Via Christi Health.

Kevin Conlin, Via Christi Health president and CEO, said both parties had agreed not to disclose terms of the sale.

The Kansas Insurance Department, which gave its approval to the sale in late December, said earlier this year that the original sale price was $65 million, a figure that could go up or down based on final financial numbers.

The sale also was reviewed by the Kansas Attorney General's Office and by the U.S. Department of Justice, which gave its approval this past week, Conlin said.

"We're pleased that this transaction has been successfully completed," Conlin said. "We think that PHS will find a good home with Coventry."

Coventry said the transaction is expected to be neutral to earnings for 2010.

Coventry and Via Christi Health announced in early October that they had signed an agreement for the sale.

Conlin said Monday that the sale allows Via Christi "to focus our resources on what we have determined to be our core mission, which is the provision of care."

Coventry, based in Bethesda, Md., serves more than 5 million people nationwide.

Michael Murphy, president and CEO of Coventry Health Care of Kansas, will become CEO of PHS. Brad Clothier, chief operating officer of PHS, will remain in that position.

PHS is the largest commercial insurer in the Wichita market.

It has more than 100,000 commercial group risk members and 20,000 commercial self-funded members in Kansas.

Reach Karen Shideler at 316-268-6674 or kshideler@wichitaeagle.com.

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