Priority Health and Physicians Health Plan of Northern Indiana (PHPNI) announced on June 19 plans for Priority Health to acquire PHPNI.
Established in 1983, PHPNI is a leading commercial health plan offering employer-sponsored benefits and third-party administration to more than 52,000 members primarily across Indiana and Ohio. It is headquartered in Fort Wayne, Indiana.
Priority Health is the second largest health insurer in Michigan after Blue Cross Blue Shield of Michigan. Serving more than 1.3 million members each year and offering a broad network of primary care physicians in Michigan, Priority Health offers an extensive portfolio of health benefits options for employer groups and individuals, including Medicare and Medicaid plans.
Both organizations anticipate the transaction will close by the end of 2024 after required approvals are completed. Priority Health and PHPNI do not expect significant changes to product lines and member coverage as a result of the transaction. Financial proceeds of the transaction will advance the mission of the PHP Foundation, adding to its holdings and enhancing the ability to support the health and wellness needs of unserved and in-need populations in Northern Indiana communities.
Cain Brothers, a division of KeyBanc Capital Markets, is serving as exclusive financial advisor and Faegre Drinker Biddle & Reath LLP is serving as legal counsel to PHPNI. Taft Stettinius & Hollister is serving as external legal counsel to Priority Health. Further terms of the deal were not disclosed.
According to data captured in the LevinPro HC database, this acquisition represents the 11th Managed Care transaction of 2024. There were 31 Managed Care deals announced during 2023, and 45 announced during 2022.
