COLUMBIA, S.C. and TAMPA, Fla., Feb. 23, 2016 /PRNewswire/ -- WellCare Health Plans, Inc. (NYSE: WCG) announced today that it has entered into an agreement to acquire certain assets of Advicare Corp., a managed care organization that provides Medicaid benefits in South Carolina.
As of Feb. 1, 2016, Advicare serves approximately 32,500 Medicaid members in the state. WellCare's acquisition is expected to close in the second quarter of 2016, pending regulatory approvals and satisfaction of normal closing conditions.
Under the agreement, Advicare members are expected to become members of WellCare of South Carolina, a subsidiary of WellCare Health Plans. WellCare is working with Advicare to ensure a smooth transition that includes continuity of care for this membership.
"This acquisition advances our growth strategy of complementing our existing business while increasing our presence in an important market," stated Ken Burdick, WellCare's chief executive officer. "We look forward to continuing our strong relationship with the state to deliver quality, cost-effective health care solutions for South Carolina's most vulnerable populations."
"Our mission is to help our members live better, healthier lives, and we are pleased to have the opportunity to expand our reach to support even more people," said Kathy Warner, state president, WellCare of South Carolina.
The financial terms of the transaction are not being disclosed.
As of Dec. 31, 2015, WellCare serves approximately 60,000 Medicaid, 3,000 Medicare Advantage and 26,000 Medicare Prescription Drug Plan members in South Carolina.
About WellCare Health Plans, Inc. Headquartered in Tampa, Fla., WellCare Health Plans, Inc. (NYSE: WCG) focuses exclusively on providing government-sponsored managed care services, primarily through Medicaid, Medicare Advantage and Medicare Prescription Drug Plans, to families, children, seniors and individuals with complex medical needs. WellCare serves approximately 3.8 million members nationwide as of Dec. 31, 2015. For more information about WellCare, please visit the company's website at www.wellcare.com or view the company's videos at https://www.youtube.com/user/WellCareHealthPlan.
About Advicare Advicare is a licensed Health Maintenance Organization that serves as a Managed Care Organization. Advicare is based in Greenville, South Carolina and provides health insurance coverage for more than 32,500 members. Advicare's provider network features primary care physicians, specialists and hospitals throughout South Carolina.
Cautionary Statement Regarding Forward-Looking Statements This news release contains "forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions are forward-looking statements. For example, statements regarding the timing of the closing of the acquisition contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause WellCare's actual future results to differ materially from those projected or contemplated in the forward-looking statements. These risks and uncertainties include, but are not limited to, the satisfaction of the closing conditions for the acquisition, the timing and receipt of regulatory approval for the acquisition, WellCare's ability to effectively manage growth, WellCare's ability to effectively execute and integrate acquisitions, potential reductions in Medicaid and Medicare revenue, WellCare's ability to estimate and manage medical benefits expense effectively, including through its vendors, WellCare's ability to negotiate actuarially sound rates, WellCare's progress on top priorities such as improving health care quality and access, ensuring a competitive cost position, and delivering prudent, profitable growth, and WellCare's ability to comply with the terms of the Corporate Integrity Agreement. Given the risks and uncertainties inherent in forward-looking statements, any of WellCare's forward-looking statements could be incorrect and investors are cautioned not to place undue reliance on any of our forward-looking statements.
Additional information concerning these and other important risks and uncertainties can be found in the company's filings with the U.S. Securities and Exchange Commission (the "SEC"), included under the captions "Forward-Looking Statements" and "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2015, and other filings by WellCare with the SEC, which contain discussions of WellCare's business and the various factors that may affect it. Subsequent events and developments may cause actual results to differ, perhaps materially, from WellCare's forward-looking statements. WellCare's forward-looking statements speak only as of the date on which the statements are made. WellCare undertakes no duty, and expressly disclaims any obligation, to update these forward-looking statements to reflect any future events, developments or otherwise.
SOURCE WellCare Health Plans, Inc.