MHH Healthcare LLC, a platform company formed by Kinderhook Industries LLC to invest in health plans, health maintenance organizations (HMOs), and healthcare services organizations, announced today that a subsidiary of MHH Healthcare has entered into a definitive agreement to acquire Medical Card System Inc. (MCS), a leading Puerto Rico-based healthcare services organization.
The acquisition is expected to close later this year, subject to customary conditions and regulatory approvals, and will mark the second significant acquisition by a subsidiary of MHH Healthcare following the prior acquisition of GlobalHealth. Additional terms of the transaction were not disclosed.
Headquartered in San Juan, MCS is a leading healthcare services organization offering a variety of insurance plans and managing care for Medicare Advantage and Commercial members throughout Puerto Rico. MCS is the 14th largest Medicare Advantage plan and the seventh largest dual-eligible plan in the United States, servicing more than 185,000 Medicare Advantage members and 205,000 Commercial members. MCS has medical management capabilities focused on enhancing the member experience and improving the quality of life in the communities it serves. The addition of MCS will provide scale and infrastructure to complement MHH Healthcare’s expansion initiatives, beginning with new entries into the Texas and Arizona markets in 2022.
GlobalHealth is an Oklahoma-based HMO with offices in Tulsa and Oklahoma City. Global provides affordable health insurance coverage for the Medicare-eligible population as well as federal, state, education, and municipal government employees. Global currently serves approximately 13,000 Medicare Advantage members in the state of Oklahoma.
“Over the years, we have built a dynamic company with a great culture and mission at MCS that puts our members and our communities first when it comes to healthcare,” said Jim O’Drobinak, president and CEO of MCS.
“MCS represents a unique opportunity to acquire a growing and innovative healthcare services organization with an experienced management team in a sector in which Kinderhook has a depth of experience and knowledge,” said Chris Michalik, managing director at Kinderhook.
“The MCS model integrates a number of powerful healthcare themes including the need to address the social determinants of health through innovative products like the Te Paga card. MCS also demonstrates the importance of provider alignment and developing consistent touchpoints with members to drive better health outcomes,” said Jigar Desai, CEO of MHH Healthcare.