|WellPoint To Acquire Resolution Health|
Acquisition of Leading Personal Health Care Guidance Company Advances WellPoint's Initiatives in Quality and Cost Management
INDIANAPOLIS, and COLUMBIA, Md., April 17 /PRNewswire-FirstCall/ -- WellPoint, Inc. (NYSE: WLP), the nation's leading health benefits provider, today announced that it has acquired Resolution Health, Inc., a leading data analytics-driven personal health care guidance company.
The acquisition will allow each company to expand its efforts to improve health care quality and reduce health care costs for its customers. Resolution Health will continue to enhance and expand the services it provides to WellPoint as well as to its growing number of other customers nationwide.
Demand for personalized, actionable health care guidance continues to grow as consumers become more involved in managing their own care. As an industry leader in proactive health care management, WellPoint has found that evidence-based health interventions can help improve treatment by identifying potential drug interactions, gaps in care, and other issues.
"Resolution Health has been a valued partner in analyzing WellPoint members' health data and providing suggestions to improve care and outcomes for more than two years," said Dijuana Lewis, president and CEO of WellPoint's Comprehensive Health Solutions Unit. "This acquisition will allow us to fully integrate Resolution Health's suite of products to extend the range and quality of services for our members, as well as members across the health plan system."
Earl Steinberg, MD, MPP, president and CEO of Resolution Health said, "Resolution Health is built on the belief that the quality and cost effectiveness of health care can be dramatically improved through clinically sound, individual member-focused communications programs. Becoming a part of WellPoint -- a company that shares these values -- furthers our goal of helping every individual receive the best, most cost-effective health care possible."
Using its market-leading technology, Resolution Health analyzes the medical and pharmacy claims data, lab results, health benefit plan information and personal health information of individual plan members. WellPoint will work with Resolution Health to identify opportunities to help close gaps between recommended care -- based upon nationally accepted, evidence-based clinical guidelines -- and the care that members actually receive, and reduce medical costs for individuals, their employers and their health plans.
Terms of the agreement were not disclosed. The transaction will not have an impact on WellPoint's current earnings per share guidance for 2008.
WellPoint, Inc. is the largest health benefits company in terms of medical membership in the United States. WellPoint is an independent licensee of the Blue Cross and Blue Shield Association and serves its members as the Blue Cross licensee for California; the Blue Cross and Blue Shield licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, New York (as Empire Blue Cross Blue Shield in 10 New York City metropolitan and surrounding counties and as Empire Blue Cross or Empire Blue Cross Blue Shield in selected upstate counties only), Ohio, Virginia (excluding the city of Fairfax, the town of Vienna and the area east of State Route 123.), Wisconsin; and through UniCare. Additional information about WellPoint is available at www.wellpoint.com .
About Resolution Health, Inc.
Resolution Health, Inc. is a data analytics-driven personal health care guidance company. Its services have been proven to improve the quality, coordination and safety of health care, enhance communications between patients and their physicians and reduce medical costs. Resolution Health serves health plans, self-insured employers, unions, third-party administrators, disease management firms and pharmacy benefits managers. Visit http://www.resolutionhealth.com
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This document contains certain forward-looking information about WellPoint that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Forward- looking statements are statements that are not generally historical facts. Words such as "expect(s)", "feel(s)", "believe(s)", "will", "may", "anticipate(s)", "intend", "estimate", "project" and similar expressions are intended to identify forward-looking statements, which generally are not historical in nature. These statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include: those discussed and identified in our public filings with the U.S. Securities and Exchange Commission, or SEC; increased government regulation of health benefits, managed care and PBM operations; trends in health care costs and utilization rates; our ability to secure sufficient premium rate increases; our ability to contract with providers consistent with past practice; competitor pricing below market trends of increasing costs; reduced enrollment, as well as a negative change in our health care product mix; risks and uncertainties regarding the Medicare Part C and Medicare Part D Prescription Drug benefits programs, including potential uncollectability of receivables resulting from processing and/or verifying enrollment (including facilitated enrollment), inadequacy of underwriting assumptions, inability to receive and process correct information, uncollectability of premium from members, increased medical or pharmaceutical costs, and the underlying seasonality of the business; a downgrade in our financial strength ratings; litigation and investigations targeted at health benefits companies and our ability to resolve litigation and investigations within estimates; our ability to meet expectations regarding repurchases of shares of our common stock; funding risks with respect to revenue received from participation in Medicare and Medicaid programs; non-compliance with the complex regulations imposed on Medicare and Medicaid programs; events that result in negative publicity for the health benefits industry; failure to effectively maintain and modernize our information systems and e-business organization and to maintain good relationships with third party vendors for information system resources; events that may negatively affect our license with the Blue Cross and Blue Shield Association; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; intense competition to attract and retain employees; unauthorized disclosure of member sensitive or confidential information; changes in the economic and market conditions, as well as regulations, applicable to our investment portfolios; possible restrictions in the payment of dividends by our subsidiaries and increases in required minimum levels of capital and the potential negative affect from our substantial amount of outstanding indebtedness; general risks associated with mergers and acquisitions; various laws and our governing documents may prevent or discourage takeovers and business combinations; future bio-terrorist activity or other potential public health epidemics; and general economic downturns. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. Except to the extent otherwise required by federal securities law, we do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are also urged to carefully review and consider the various disclosures in our SEC reports.
SOURCE WellPoint, Inc.
CONTACT: Media, Kristin Binns, +1-212-697-7802, Investors, Michael Kleinman, +1-317-488-6713, both of WellPoint