Consolidated Services Group, Inc., a Pennsylvania-based provider of property and casualty medical claims management services, has acquired CHN Solutions from Selective Insurance Group, Inc. for $16 million.
CHN Solutions provides URAC-Accredited preferred provider organization (PPO) and managed care programs.
The cash deal doubles the size of the company to approximately $60 million in annual revenues and marries two regional industryplayers.
Selective will remain a client of the new company with a multi-year contract. According to James Coleman, executive vice president of Selective’s Diversified Insurance Services, “We look forward to an ongoing client relationship with CSG and believe this transition is positive for both companies.”
The new company, known as Consolidated Services Group, will comprise CSG’s complete portfolio of services (including CRC and MedPath) and the full complement of CHN Solutions offerings (including Northeast Health Direct), delivered through its unparalleled integration technology platform, Medlogix. This proprietary technology bridges the communication gap between payors and providers using a Web-based platform. The technology was developed to satisfy the regulations of New Jersey, New York and Pennsylvania, states with some of the industry’s most complex rules.
Consolidated Services Group is headquartered in Lansdale, Pa., with an office in Cherry Hill, N.J., and now Hamilton, N.J., and Connecticut. CHN Solutions will retain its name and, with the same management team and workforce, will operate as a division of CSG.
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