Lansdale, Pa.-based Consolidated Services Group Inc., a provider of property and casualty medical claims management services, said it has acquired CHN Solutions for $16 million.
CSG, a privately held regional firm, which services the auto liability, general liability and workers' compensation industries, bought the Hamilton, N.J.-based firm from Selective Insurance Group Inc.
CHN Solutions provides comprehensive URAC-Accredited preferred provider organization and managed care programs.
CSG said the cash deal doubles the size of the company to approximately $60 million in annual revenues and weds two regional providers to deliver greater breadth of services through a proprietary integration technology platform--Medlogix.
CSG said it has about 225 employees and the firm it is acquiring has about 200 personnel.
The acquisition, CSG said, is financed by CapitalSource Finance LLC, Md., and will enable the firm to marshal a portfolio of services that it can customize to client needs.
"Adding CHN Solutions to our family will benefit our customers, the CHN PPO and all of our employees," said Michael Morrone, president and CEO of CSG. "Now we can deliver a more efficient comprehensive service package to customers...."
Mr. Morrone forecasted that the combined business plan of the two companies "will be an unbeatable combination. It has always been my credo to 'position our company for success.' This will present options for growth and advancement to employees within a larger, more diverse company."
Len Weinman, president and CEO of CHN Solutions, is now senior vice president of CSG. "We anticipate a smooth transition as we join forces with CSG," he said.
According to James Coleman, executive vice president of Selective's Diversified Insurance Services, his firm will remain a client of the new company with a multi-year contract and, "We look forward to an ongoing client relationship with CSG and believe this transition is positive for both companies."
The new company, known as Consolidated Services Group, will comprise CSG's complete portfolio of services (including CRC and MedPath) and the full complement of CHN Solutions offerings (including Northeast Health Direct), delivered through its integration technology platform, Medlogix.
CSG said its proprietary technology bridges the communication gap between payers and providers and creates a seamless, Web-based platform through which all processes flow through one integrated system.
The technology was developed to satisfy the regulations of New Jersey, New York and Pennsylvania--states with some of the industry's most complex rules. In creating Medlogix, CSG engineered a highly adaptable platform that can easily accommodate the needs of nearly any other state or genre. Keeping with its mission, CSG continues to deliver on the promise of value.
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