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McLaren Health Care has completed the acquisition of Indianapolis-based MDwise to grow its health plan network.
The acquisition establishes McLaren's first operations outside the state of Michigan, and grows the system's health plan assets to jointly serve more than 620,000 individuals, making it one of the region's largest provider-sponsored plans. MDwise will continue to operate under its current brand.
With completion of the transaction, total revenues for McLaren are expected to approach $6 billion annually. The organization anticipates achieving economies of scale and increased opportunities to share data and best practices to support financial operations, population health efforts and risk-based contracting. Terms of the transaction were not disclosed.
"Today's consolidating healthcare marketplace can be challenging, so we were thrilled to identify this opportunity with MDwise," said Philip Incarnati, president and CEO of McLaren Health Care. "Strategic acquisitions like this allow McLaren to deliver on our promise to provide the best value in health care as defined by quality outcomes and cost."
The acquisition was finalized on Dec. 29, 2017 following approvals by the Indiana Department of Insurance and other regulators, with an effective date of Jan. 1, 2018.
McLaren Health Care, MDwise, Acquisition, M&A, Philip Incarnati, US
