Concentra will acquire Beech Street for $165 million. The announcement indicates that the deal will be finalized this year, and a definitive agreement has been signed by both parties.
Beech’s senior management, led by Bill Hale, will be continuing in their roles, according to the companies’ joint press release. Concentra CEO Dan Thomas noted that Beech’s strong group health PPO will add strength to Concentra’s group business. While Concentra has been active in smaller niches in the group business, it has long been a relatively minor market for the company.
There will be the usual Federal approval processes, which should not be much of an issue. Concentra and Beech have been contractually linked for some time with Beech providing network access to its provider network under Concentra’s Focus PPO.
My take – a smart move by Concentra to gain share and presence in the group market, diversifying its revenue sources and adding depth in provider networks, at a very reasonable price.
What does this mean for you?
More consolidation means more bargaining power for the networks with providers and payers alike.
Aug
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