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Evolent Health, a provider of value-based care platform to health systems and physician organizations, has announced expansion of relationships with partners in Illinois and New Mexico.
In New Mexico, Evolent has entered into an agreement to acquire assets related to the commercial business from New Mexico Health Connections (NMHC) for $10.25 million in cash.
The assets include a health plan management services organization with a tenured leadership team and employee base with extensive experience working locally with providers to run NMHC's suite of preventive, disease and care management programs.
According to the statement, the assets will be contributed to a new entity, True Health New Mexico, a wholly-owned subsidiary of Evolent Health.
The legacy NMHC will continue to operate as an independent non-profit health care organization operating throughout the state of New Mexico, offering individual health insurance products. True Health New Mexico expects to enter into a managed services agreement with NMHC to support this ongoing individual business.
Evolent's combined administrative services revenue for contracting with both entities is expected to be approximately $20 million in 2018.
Evolent chief executive officer Frank Williams said: "In New Mexico, we are acquiring selected assets of New Mexico Health Connections, a legacy Valence partner, to establish a new health plan managed services organization that will leverage Evolent's operational, clinical and technology services to support a provider-centric, value-based model of care throughout the state of New Mexico."
"In Illinois, we expect to extend our health plan services platform to serve an additional 160,000 Medicaid enrollees on behalf of CountyCare Health Plan, a subsidiary of Cook County Health & Hospitals System," Williams added.
Evolent provides health plan operational and clinical services to CountyCare's members and providers.
"Building upon the success of our financially aligned partnerships in other states, we have the ability to leverage relationships with community providers and a world-class clinical and administrative infrastructure to deliver lower cost, higher quality health care for the residents of New Mexico," Williams continued.
NMHC chief executive officer Martin Hickey, commented: "This relationship with Evolent positions our organization for dynamic growth and the chance to extend our mission to more New Mexicans. We expect that providers, employers and members will all benefit from the scale and infrastructure of a national partnership while ensuring leadership and clinical decision-making are still driven locally.
“Evolent's investment supports the sustainability of a statewide, provider-centric model. This should translate into more choice and lower costs by empowering the local physician community."
The transactions are subject to regulatory approval from the New Mexico Office of Superintendent of Insurance (OSI).
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