Insurer Coventry Health Care Inc said on Monday it will buy Preferred Health Systems to strengthen its presence in the Midwestern United States.
Wichita, Kansas-based Preferred Health is a commercial health plan that has more than 100,000 members for whom it assumes full insurance risk, and 20,000 members for whom it only provides administrative services.
Coventry will serve more than 1 million members in its Midwest region with Preferred Health, which is a subsidiary of Via Christi Health System, Inc.
Financial terms of the deal were not disclosed. The deal is expected to close in the next 90 to 120 days and be neutral to earnings in the first year after closing.
