MANAGED CARE URGE TO MERGE?

Cain Brothers, June 6, 2004

Strategies In Capital Finance
Managed care consolidation activity so far in 2004 has been impressive with nine transactions announced or closed through mid May. In April and May alone, there have been five announced or closed transactions, which emphasize continuing industry consolidation trends. Provider-sponsored, independent, and middle market health plans continue to be acquired by larger plans looking to increase membership, expand geographical reach, and enhance profitability by taking costs out of the acquired businesses. Investor-owned companies pursuing Medicaid specialization strategies are particularly active consolidators. Managed care consolidation is continuing.

Cain Brothers
www.cainbrothers.com

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