Florida Blue to Acquire Diagnostic Clinic Medical Group

Will Bolster Florida Blue's Value-Based Care Presence in Tampa/St. Petersburg Area

Dec 17, 2012, 12:30 ET from Florida Blue

JACKSONVILLE, Fla., Dec. 17, 2012 /PRNewswire/ -- Florida Blue, Florida's Blue Cross and Blue Shield company, has reached an agreement to purchase Diagnostic Clinic Medical Group (Diagnostic Clinic) of Largo, Fla. Once the deal closes, Diagnostic Clinic will become a wholly owned subsidiary of Florida Blue.

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Diagnostic Clinic has served Pinellas County for more than 40 years and is a physician-owned multi-specialty practice that provides adult primary care, specialty care, pediatrics, lab and imaging services, physical therapy, interventional spine care and related services. Diagnostic Clinic is one of the largest medical facilities in Pinellas County, with approximately 100 highly trained health care providers on staff, handling more than 400,000 patient visits per year. Diagnostic Clinic has three locations: Largo, Countryside and Palm Harbor.

The company specializes in the efficient delivery of ambulatory treatment and ancillary services, with increasing emphasis on preventive care and chronic-condition management. Diagnostic Clinic differentiates itself as a "One Stop Medical Home" by providing highly integrated comprehensive medical care for the entire family. Its unique blend of primary care, specialists, and a compassionate staff leverages technology and communication to offer a superior team approach to medical care. This is facilitated by onsite testing, rapid accurate results, and information sharing using electronic medical records. This adds convenience while reducing the total cost of medical care compared with traditional and hospital based models.

"We have been highly impressed by the innovative approach to care implemented by the leadership team at Diagnostic Clinic," said Pat Geraghty, chairman and CEO of Florida Blue. "Their on-going transformation to value-based outcomes aligns well with our approach to serving the unique needs of our members, and we look forward to applying the strengths of their organization to other aspects of our business."

H. Charles Campbell, MD, FACS, Diagnostic Clinic's CEO, expressed optimism and excitement over the future of the new combination. "We're delighted to partner with an organization that has such a strong commitment to the community and welcome the opportunity to expand and improve our services to all of our patients and insurers."  

James F. Rivenbark, III, MD, Diagnostic Clinic's chief medical and operations officer, continued by saying, "Exploring this opportunity with Florida Blue revealed a remarkable alignment between our organizational visions and the potential to benefit all health care stakeholders."

Diagnostic Clinic's ambulatory care-based service fits with Florida Blue's vision of patient-centered care which focuses on creating collaborative relationships between Florida Blue and health care providers. It is anticipated that this acquisition will provide a unique opportunity to build upon the team approach already in place at Diagnostic Clinic. The system is scalable and will promote implementation of additional aligned incentive models to meet its overall value-based goals of improving quality and enhancing member experiences while lowering overall cost.

As a strong and recognized brand in Largo and the Tampa area, Diagnostic Clinic will remain an independent subsidiary of Florida Blue.

The deal is expected to close by the end of December, subject to certain closing conditions. Terms of the acquisition will not be disclosed.

Investment bank, Houlihan Lokey, advised Florida Blue on this transaction and investment bank, Avondale Partners, advised Diagnostic Clinic Medical Group on this transaction.

About Florida Blue
Florida Blue, Florida's Blue Cross and Blue Shield company, is a leader in Florida's health care industry. Our mission is to help people and communities achieve better health. Florida Blue has approximately 4 million health care members and serves 15.5 million people in 16 states through its affiliated companies. Florida Blue is a not-for- profit, policyholder-owned, tax-paying mutual company. Headquartered in Jacksonville, Fla., it is an independent licensee of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield companies. For more information, visit www.FloridaBlue.com.

SOURCE Florida Blue