McLaren Health Care Acquires Indiana Health Plan MDwise


Grand Blanc-based McLaren Health Care has signed a definitive agreement to acquire MDwise, a non-profit HMO that serves more than 360,000 and generates more than $1.5 billion in annual revenue in Indiana.

The transaction, which is subject to state and federal regulatory review and closing conditions, is expected to be completed by Dec. 31 and bring McLaren’s total revenues to nearly $6 billion annually.

MDwise will become part of McLaren Health Care, a system that owns and operates 12 acute care hospitals and McLaren Health Plan, a Michigan HMO that provides benefits to more than 260,000 commercial, Medicaid, and Medicare beneficiaries statewide. Once the transaction is complete, MDwise and McLaren Health Plan will collectively serve more than 620,000 people, making it one of the region’s largest provider-based health plans.

“This expansion allows us to leverage the success and strength of our health plan expertise, and brings significant benefits to the individuals and families served by MDwise,” says Philip Incarnati, president and CEO of McLaren Health Care. “In addition to providing a platform for future growth in Indiana, expanding our health plan operations allows us to create greater economies of scale and new opportunities to share data and best practices, all of which will improve the experience of both members and network providers.”

McLaren will maintain MDwise’s Indiana operations and MDwise members will not experience any changes to their benefits or provider network. The plan will also provide the same services currently available under its Hoosier Healthwise and Healthy Indiana plans.

“After a lengthy selection process, we are confident McLaren Health Care will be an ideal choice to acquire MDwise,” says Jim Parker, president and CEO of MDwise. “With their strong track record operating a successful health plan in Michigan, they have the expertise needed to assist MDwise to succeed in a rapidly changing managed care market while maintaining a high level of service to our members and provider partners.”

McLaren is a fully integrated health network including 12 hospitals, ambulatory surgery centers, imaging centers, and a 450-member employed primary care physician network.

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