MANAGED CARE CONSOLIDATION AFFECTING MORE THAN 50% OF THE U.S. POPULATION According to Irving Levin Associates, Inc.

FOR IMMEDIATE RELEASE
Stephen M. Monroe, Partner
Kathy Hammell, Editor
Phone: (800) 248-1668
Fax: (203) 846-8300
pressreleases@levinassociates.com
MANAGED CARE CONSOLIDATION AFFECTING MORE THAN 50% OF THE U.S. POPULATION According to Irving Levin Associates, Inc.
(New Canaan, Connecticut – June 23, 1999) – The preliminary results of a comprehensive research report on the managed care merger and acquisition market have just been released by Irving Levin Associates, Inc., publisher of The Managed Care Acquisition Report, First Edition.
Since the beginning of 1994, there have been in excess of 275 mergers and acquisitions of managed care companies, including HMOs, PPOs, pharmacy and dental managed care plans and Blue Cross Blue Shield plans. In the past three years, the annual volume has averaged around 60 transactions. "Since 1994, managed care and benefit companies covering about 130 million enrollees have been purchased or merged into other companies – a staggering level," commented Stephen M. Monroe, a partner at Irving Levin Associates. In addition, almost one half of HMO enrollees over the past five years have seen their companies sold. "To put this into perspective, it is important to remember that only 10 years ago, managed care and HMOs covered just a small fraction of the U.S. population," continued Mr. Monroe.

Number of Managed Care Transactions
1994
41
1995
27
1996
60
1997
60
1998
61
1999
28 (YTD)

The total dollar value of the approximately 275 transactions in the past five and one half years is estimated to be about $45 to $50 billion. Based on the first six months of 1999, the transaction activity has continued at the same pace of the past three years. "After a difficult 1998, HMOs have shored up their financial condition by increasing premium rates by an average 7% to 8% across the country. Despite this focus on existing operations, we expect the consolidation wave to continue," stated Mr. Monroe.
The Managed Care Acquisition Report, First Edition, has approximately 150 pages of hard-to-find information on all of the publicly announced managed care mergers and acquisitions from January 1, 1994 through June 30, 1999. Irving Levin Associates, Inc. is a New Canaan, Connecticut-based research and publishing firm that has specialized in the health care and senior care merger and acquisition market for more than 50 years. The Managed Care Acquisition Report, First Edition, may be purchased by calling 800-248-1668.
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