Grand Blanc-based health system McLaren Health Care has completed the acquisition of Indiana-based insurance provider MDwise. The transaction establishes McLaren’s first operations outside of Michigan and grows the systems health plan assets to jointly serve more than 620,000 individuals.
MDwise will continue to operate under its own brand. Terms of the deal were not disclosed.
“Today’s consolidating healthcare marketplace can be challenging, so we were thrilled to identify this opportunity with MDwise,” says Philip Incarnati, president and CEO of McLaren Health Care. “Strategic acquisitions like this allow McLaren to deliver on our promise to provide the best value in health care as defined by quality outcomes and cost.”
Following the acquisition, McLaren’s total revenue is projected to approach $6 billion annually. Based on the deal, McLaren expects to achieve economies of scale and share data and best practices to support financial operations, population health efforts, and risk-based contracting.
Following approvals by the Indiana Department of Insurance and other regulators, the acquisition was finalized on December 29, 2017, and took effect on Monday.