HIP of N.Y. Acquires ConnectiCare

HIP Health Plan of New York (HIP) has acquired ConnectiCare Holding Company (ConnectiCare) in a transaction that unites the companies, The parties say thed eal allows for regional growth while retaining local autonomy.

HIP, a private, not-for-profit managed care company, is the largest HMO in the New York metro market with over a million members.

ConnectiCare is the third largest health plan in Connecticut and has been one of the state’s fastest growing managed care plans. Founded in 1981, ConnectiCare has 270,000 members in Connecticut and Massachusetts. It will remain headquartered in Farmington, Conn., with its own offices and management. Terms are not being disclosed.

The acquisition of ConnectiCare by HIP is subject to regulatory approval, which is expected within 2004. Upon approval and completion of the transaction, ConnectiCare’s stock will transfer fully from its current investor owners, The Carlyle Group and Liberty Partners, to HIP.

“ConnectiCare, with its high member satisfaction and strong growth, shares HIP’s commitment to excellence and will be an important part of our offerings,” said Anthony L. Watson, chairman and CEO of HIP Health Plan.

“With similar roots and values, ConnectiCare and HIP have a positive synergy that will enhance and complement both organizations,” said Gus Gamache, president and CEO of ConnectiCare. “HIP’s national reputation as a leader in medical quality and technology will enable us to learn and benefit from each other and share best practices,” Gamache added.

ConnectiCare is a Connecticut-based managed care company serving nearly 270,000 members through its affiliates, ConnectiCare, Inc.; ConnectiCare of Massachusetts, Inc.; ConnectiCare of New York, Inc.; and ConnectiCare Insurance Company, Inc. ConnectiCare, Inc. holds an “Excellent” Accreditation rating from the National Committee for Quality Assurance (NCQA) for its commercial employer group plans. For more information on ConnectiCare visit www.connecticare.com.

HIP Health Plan of New York is the largest HMO in the New York metropolitan area. HIP provides access to care in a variety of ways. Members have access to doctors organized and practicing in large multidisciplinary medical groups in medical centers. Alternatively, they may see doctors in medical centers associated with leading hospitals, including Beth Israel Medical Center, St. Luke’s-Roosevelt Hospital Center, St. Barnabas Hospital, Lenox Hill Hospital or Montefiore Medical Center. Members also have access to HIP’s network of physicians practicing in their own office, which includes over 22,000 providers in more than 33,000 locations.

Topics Mergers & Acquisitions New York Connecticut