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Magellan Health has entered into an agreement to acquire Veridicus Holdings, a privately held pharmacy benefit management (PBM) organization with clinical services and facilities.
Veridicus owns and operates a licensed insurance company which is contracted with the Centers for Medicare and Medicaid Services (CMS) and serves members enrolled in the Medicare Part D Employer Group Waiver Plan (EGWP) program.
Headquartered in Salt Lake City and founded in 2006, Veridicus has approximately 130 employees.
Veridicus serves a customer base with an underlying PBM membership of approximately 225,000 lives, the majority of which are under a long-term contract with a trust administering benefits for participating employers.
Magellan Health operates in health, pharmacy benefits and other specialty areas of healthcare.
Upon the closing of this acquisition, Doug Burgoyne, CEO of Veridicus, and the Veridicus team will join Magellan Rx Management.
“As Magellan Rx Management continues to differentiate itself in the market by offering clinical management programs and a value-based approach, Veridicus’ programs and expertise will be a welcome addition,” said Barry Smith, chairman and CEO of Magellan Health.
Mostafa Kamal, CEO of Magellan Rx Management, said: “I am pleased to welcome Veridicus and Doug Burgoyne to the Magellan Rx Management team. This acquisition will build upon Magellan Rx management’s clinically oriented approach to PBM services with additional capabilities that further amplify our laser focus on improving quality of care and outcomes for the patients we serve, while reining in overall costs for payers.
“As we continue to solidify our position as a value-based PBM, this acquisition makes a great deal of strategic sense.”
Burgoyne added: “Joining Magellan Rx Management right now is an exciting opportunity, and I’m pleased to be able to bring Veridicus’ expertise to Magellan. Our 10 years of experience, as well as our position as an industry leader in clinical care management on behalf of our commercial and Medicare Part D clients, will align well with Magellan Rx Management’s vision and growth strategy.”
Closing of the transaction is expected before the end of 2016.
Magellan Health, US, Veridicus Holdings, Insurance, Healthcare, Risk management, M&A, Mostafa Kamal, Barry Smith, Doug Burgoyne