Aetna U.S. Healthcare To Acquire Frontier Community Health Plans Of Colorado
Acquisition reflects Aetna U.S. Healthcare’s strategy to expand Managed Care business nationwide
Hartford, Conn. and Blue Bell, PA, January 27, 1997 — Aetna U.S. Healthcare, the health business unit of Aetna
Inc. (NYSE: ΑET), today announced it had signed a
definitive agreement to acquire Frontier Community Health
Plans, Inc., a managed care company licensed to offer HMO
and POS plans in Colorado. Terms of the transaction were
not disclosed.
The acquisition, which is subject to regulatory approval
and other customary conditions, is expected to close in
February 1997.
"The acquisition of Frontier is an important step in
fulfilling our goal of a national managed care
presence," said Mike Cardillo, co-president of Aetna
U.S. Healthcare. "The transaction reflects the
strength and flexibility of the Aetna U.S. Healthcare
combination and will allow us to move quickly into the
Colorado managed care market, as well as accelerate our
ability to file for Medicare approval. As we expand our
managed care presence, Aetna U.S. Healthcare will be able
to provide our customers with even greater access to
quality, affordable health care."
"We are pleased with this acquisition, because we
believe our members will benefit from the quality of
services available from Aetna U.S. Healthcare," said
David Engleberg, president of Frontier. "It was our
intent to affiliate with a company that has the same
commitment to excellence that we do."
"We welcome Frontier members and want to assure them
that their current benefits will continue without
interruption," said John Coyle, regional manager for
Aetna U.S. Healthcare’s West Central Region.
"We look forward to introducing them to Aetna U.S.
Healthcare’s preventive care and wellness
programs."
Aetna U.S. Healthcare’s PPO network in Colorado has
approximately 1,200 primary care physicians, 3,200
specialists and 23 hospitals and serves 130,000 PPO and
indemnity members. Nationally, the company has HMOs
operational in 23 states and the District of Columbia.
"Having the ability to market an array of HMO-based
products will be a real advantage in the Denver
area," said Katharine Begley, general manager for
Aetna U.S. Healthcare in Colorado. "Employers are
increasingly looking for benefits companies that have the
flexibility to offer an array of health plans, from HMO
to indemnity, as well as more traditional insurance
products."
Founded in 1995, Frontier Community Health Plans is the
operating division of Frontier Health Holdings, Inc.
Frontier serves approximately 3,000 members in 12
counties throughout the greater Denver area. The company
has 3,400 independent physicians and 25 hospitals
participating in its provider network.
Aetna U.S. Healthcare is the nation’s leading health
and related benefits organization, providing a variety of
managed care, specialty health, indemnity and workers
compensation managed care products to 23 million
Americans nationwide. In addition, Aetna U.S. healthcare
provides quality measurement and improvement programs and
data analysis for providers and purchasers of health
care.
For more information about Aetna Inc., please visit the company's website at
www.aetna.com.
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