| Acquisition expands Anthem’s focus on behavioral health solutions
as part of whole person care
INDIANAPOLIS--(BUSINESS WIRE)--Jun. 6, 2019--
Anthem, Inc. (NYSE:ANTM) today announced that the company has entered
into a definitive agreement to acquire Beacon Health Options (Beacon),
the largest independently held behavioral health organization in the
country. Beacon currently serves more than 36 million individuals across
all 50 states, including nearly 3 million individuals under
comprehensive risk-based behavioral programs. The acquisition aligns
with Anthem’s strategy to diversify into health services and deliver
market-leading integrated solutions and care delivery models that
personalize care for people with complex and chronic conditions.
“As Anthem works to improve lives, simplify healthcare and serve as an
innovative and valuable partner, we’re focused on providing solutions
that address the needs of the whole person,” said Gail K. Boudreaux,
President and CEO, Anthem. “With an extensive track record in behavioral
health, Beacon fits well with our strategy to better manage the needs of
populations with chronic and complex conditions, and deliver integrated
whole health solutions. Together with Beacon, we will enhance our
capabilities to serve state partners, health plans and employer groups
as they seek to address consumer behavioral health needs.”
The acquisition of Beacon will offer Anthem the opportunity to combine
its existing behavioral health business with Beacon’s successful model
and support services to fully scale integrated behavioral and physical
health capabilities to customers and consumers nationwide. Collectively,
both businesses will be able to enhance whole person care and improve
overall health outcomes with a stronger portfolio of specialized
products, more clinical expertise, improved analytics and health data,
and broader provider networks and relationships. The combination will
also create one of the most comprehensive behavioral health networks
capable of offering more accessible and affordable care for consumers
throughout the country.
Upon completion, Beacon, combined with Anthem’s behavioral health
business, will operate as an integrated team within Anthem’s Diversified
Business Group. Russell C. Petrella, Ph.D., Beacon Health Options
President and CEO, as well as other key members of Beacon’s senior team,
will join Anthem’s Diversified Business Group to lead the efforts to
offer innovative behavioral health solutions and further expand this
business.
“We are excited to partner with Anthem to serve the behavioral health
needs of more than 60 million Americans,” said Petrella. “Our
member-focused, integrated clinical care model helps individuals and
their families cope with their physical and behavioral health
challenges. Together, we will expand access and enhance the quality of
care for our mutual members. I am proud of the talented and committed
team at Beacon, and we look forward to our future with Anthem.”
Anthem will acquire Beacon from Bain Capital Private Equity and Diamond
Castle Holdings, who invested to grow and improve the company and help
achieve its mission. Financial terms of the transaction were not
disclosed. The acquisition is expected to close in the fourth quarter of
2019 and is subject to standard closing conditions, customary state
regulatory approvals and the expiration or early termination of the
waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
The transaction is expected to be slightly accretive to adjusted
earnings in 2020.
About Anthem, Inc.
Anthem is a leading health benefits company dedicated to improving lives
and communities, and making healthcare simpler. Through its affiliated
companies, Anthem serves more than 78 million people, including over 40
million within its family of health plans. We aim to be the most
innovative, valuable and inclusive partner. For more information, please
visit www.antheminc.com
or follow @AnthemInc on Twitter.
Forward-Looking Statements
This document contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements reflect our views about future events and
financial performance and are generally not historical facts. Words such
as “expect,” “feel,” “believe,” “will,” “may,” “should,” “anticipate,”
“intend,” “estimate,” “project,” “forecast,” “plan” and similar
expressions are intended to identify forward-looking statements. 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 statements. You are
cautioned not to place undue reliance on these forward-looking
statements that speak only as of the date hereof. You are also urged to
carefully review and consider the various risks and other disclosures
discussed in our reports filed with the U.S. Securities and Exchange
Commission from time to time, which attempt to advise interested parties
of the factors that affect our business. Except to the extent otherwise
required by federal securities laws, we do not undertake any obligation
to republish revised forward-looking statements to reflect events or
circumstances after the date hereof. These risks and uncertainties
include, but are not limited to: the impact of federal and state
regulation, including ongoing changes in the Patient Protection and
Affordable Care Act and the Health Care and Education Reconciliation Act
of 2010, as amended, or collectively, the ACA, and the ultimate outcome
of legal challenges to the ACA; trends in healthcare costs and
utilization rates; our ability to contract with providers on
cost-effective and competitive terms; our ability to secure sufficient
premium rates, including regulatory approval for and implementation of
such rates; competitive pressures and our ability to adapt to changes in
the industry and develop and implement strategic growth opportunities;
reduced enrollment; unauthorized disclosure of member or employee
sensitive or confidential information, including the impact and outcome
of any investigations, inquiries, claims and litigation related thereto;
risks and uncertainties regarding Medicare and Medicaid programs,
including those related to non-compliance with the complex regulations
imposed thereon; our ability to maintain and achieve improvement in
Centers for Medicare and Medicaid Services, or CMS, Star ratings and
other quality scores and funding risks with respect to revenue received
from participation therein; a negative change in our healthcare product
mix; costs and other liabilities associated with litigation, government
investigations, audits or reviews; the ultimate outcome of litigation
between Cigna Corporation, or Cigna, and us related to the merger
agreement between the parties, including our claim for damages against
Cigna, Cigna’s claim for payment of a termination fee and other damages
against us, and the potential for such litigation to cause us to incur
substantial costs, materially distract management and negatively impact
our reputation and financial condition; non-compliance by any party with
the pharmacy benefit management services agreements between us and each
of Express Scripts, Inc., or Express Scripts, and CaremarkPCS Health,
L.L.C., or CVS Health, as well as any agreements governing the
transition of pharmacy benefit management services provided to us from
Express Scripts to CVS Health, which could result in financial
penalties, our inability to meet customer demands, and sanctions imposed
by governmental entities, including CMS; medical malpractice or
professional liability claims or other risks related to healthcare
services and pharmacy benefit management services provided by our
subsidiaries; possiblerestrictions in the payment of dividends
from our subsidiaries and increases in required minimum levels of
capital; our ability to repurchase shares of our common stock and pay
dividends on our common stock due to the adequacy of our cash flow and
earnings and other considerations; the potential negative effect from
our substantial amount of outstanding indebtedness; a downgrade in our
financial strength ratings; the effects of any negative publicity
related to the health benefits industry in general or us in particular;
failure to effectively maintain and modernize our information systems;
events that may negatively affect our licenses with the Blue Cross and
Blue Shield Association; large-scale medical emergencies, such as future
public health epidemics and catastrophes; general risks associated with
mergers, acquisitions, joint ventures and strategic alliances; possible
impairment of the value of our intangible assets if future results do
not adequately support goodwill and other intangible assets; changes in
economic and market conditions, as well as regulations that may
negatively affect our liquidity and investment portfolios; changes in
U.S. tax laws; intense competition to attract and retain employees; and
various laws and provisions in our governing documents that may prevent
or discourage takeovers and business combinations.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190606005173/en/
Source: Anthem, Inc.
Anthem Contacts:
Investor Relations
Chris Rigg
Chris.Rigg@anthem.com
Media
Jill Becher,
414-234-1573
Jill.becher@anthem.com
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