HIP Completes ConnectiCare Acquisition
New York, N.Y., March 10, 2005 - HIP Health Plan of New York today announced the completion of its acquisition of ConnectiCare Holding Company, Inc. HIP received regulatory approval for the acquisition from Massachusetts and previously from Connecticut and New York. The acquisition agreement was announced June 23, 2004.
HIP's acquisition of ConnectiCare strengthens its current market position in the tri-state region. Already the largest HMO in New York City by membership, HIP's acquisition of ConnectiCare extends its geographic reach to Connecticut and Massachusetts. With the addition of ConnectiCare members, HIP's membership increases from approximately 1.1 million members to 1.4 million members.
ConnectiCare, the third largest health plan in Connecticut was ranked in the top 10 nationally in terms of medical quality in 2004. ConnectiCare will retain its premium brand name and continue to operate from its Farmington, Conn. headquarters under its current senior management team.
"ConnectiCare, with its high member satisfaction and strong position, shares HIP's corporate values of quality and service and represents an excellent complement to our established operations," said Anthony L. Watson, Chairman & CEO of HIP. "The acquisition is part of HIP's strategy to expand our presence in neighboring states."
Gus Gamache President & CEO of ConnectiCare, said, "Our acquisition by HIP will make us an even stronger and formidable competitor in the Connecticut and Massachusetts marketplace. The resources that HIP brings will enable us to continue to focus on meeting the needs of our core business while seeking opportunities to expand our offerings in this dynamic environment."
About HIP
HIP Health Plan of New York is the largest HMO in New York City by membership. HIP provides access to care in a variety of ways. Members have access to doctors organized and practicing in large multidisciplinary medical groups in medical centers. Alternatively, they may see doctors in medical centers associated with leading hospitals, including Beth Israel Medical Center, St. Luke's-Roosevelt Hospital Center, St. Barnabas Hospital, Lenox Hill Hospital or Montefiore Medical Center. Members also have access to HIP's network of physicians practicing in their own offices, which includes over 22,000 providers in more than 33,000 locations. HIP is affiliated with more than 100 participating hospitals, including those named above and other outstanding institutions. HIP acquired Vytra Health Plans in 2001. For more information about HIP, please visit our Web site, www.hipusa.com. It is available in English, Spanish, Chinese and Korean.
About ConnectiCare
ConnectiCare is a Connecticut-based managed care company serving approximately 245,000 members through its affiliates, ConnectiCare, Inc.; ConnectiCare of Massachusetts, Inc. (CMI); ConnectiCare of New York, Inc.; and ConnectiCare Insurance Company, Inc. ConnectiCare, Inc. and CMI both hold an "Excellent" Accreditation rating from the National Committee for Quality Assurance (NCQA) for its commercial employer group plans. For more information on ConnectiCare visit www.connecticare.com.
