Anthem, Inc., has entered into a definitive agreement to acquire Beacon Health Options, the largest independently held behavioral health organization in the country.
Beacon currently serves more than 36 million individuals across all 50 states, including nearly three million individuals under comprehensive risk-based behavioral programs.
In a statement, Anthem said that the acquisition aligned with Anthem's strategy to diversify into health services and deliver market-leading integrated solutions and care delivery models that personalize care for people with complex and chronic conditions.
“As Anthem works to improve lives, simplify healthcare, and serve as an innovative and valuable partner, we're focused on providing solutions that address the needs of the whole person,” said Gail K. Boudreaux, the president and chief executive officer of Anthem. “With an extensive track record in behavioral health, Beacon fits well with our strategy to better manage the needs of populations with chronic and complex conditions, and deliver integrated whole health solutions. Together with Beacon, we will enhance our capabilities to serve state partners, health plans, and employer groups as they seek to address consumer behavioral health needs.”
Anthem added that the acquisition of Beacon would offer Anthem “the opportunity to combine its existing behavioral health business with Beacon's successful model and support services to fully scale integrated behavioral and physical health capabilities to customers and consumers nationwide. Collectively, both businesses will be able to enhance whole person care and improve overall health outcomes with a stronger portfolio of specialized products, more clinical expertise, improved analytics and health data, and broader provider networks and relationships.”
The company added that the combination also would “create one of the most comprehensive behavioral health networks capable of offering more accessible and affordable care for consumers throughout the country.”
Anthem said that upon completion of the merger, Beacon, combined with Anthem's behavioral health business, will operate as an integrated team within Anthem's diversified business group. Russell C. Petrella, Ph.D., Beacon Health Options' president and chief executive officer, as well as other members of Beacon's senior team, will join Anthem's diversified business group to lead the efforts to offer innovative behavioral health solutions and further expand this business, Anthem said.
“We are excited to partner with Anthem to serve the behavioral health needs of more than 60 million Americans,” said Dr. Petrella. “Our member-focused, integrated clinical care model helps individuals and their families cope with their physical and behavioral health challenges. Together, we will expand access and enhance the quality of care for our mutual members. I am proud of the talented and committed team at Beacon, and we look forward to our future with Anthem.”
Anthem is acquiring Beacon from Bain Capital Private Equity and Diamond Castle Holdings. Financial terms of the transaction were not disclosed. The acquisition is expected to close in the fourth quarter of 2019 and is subject to standard closing conditions, customary state regulatory approvals, and the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. Anthem said that it expected the transaction to be slightly accretive to adjusted earnings in 2020.
Learn more: www.antheminc.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].