Two Deals Close and Texas HMO Market Becomes More Concentrated
Two Deals Close, and Texas HMO Market Becomes More Concentrated
February 1, 2000
Two Texas HMOs changed hands yesterday and the states HMO market has become more concentrated. In the first deal, PacifiCare bought Harris Methodist Health Plan from Texas Health Resources, the parent company of the Harris Methodist and Presbyterian Hospitals in the Dallas-Ft. Worth area. The HMO had been up for sale for about two years, and an earlier deal with Blue Cross Blue Shield of Texas had fallen apart.
For additional information about PacifiCares plans for the HMO, including staff cuts, see Sarah Lundays article in the Ft. Worth Star Telegram. http://star-telegram.com/news/doc/1047/1:BIZ21/1:BIZ210201100.htmll
Humana will add about 100,000 HMO lives in Houston and Corpus Christi with its acquisition of the Memorial Sisters of Charity HMO. That plan was jointly owned by the Memorial Hermann Health system and the Christus hospitals.
In June 1998, the four largest HMOs in the state had 49.2 percent of the enrollment in Texas HMOs. Since then, these two deals have occurred. In addition, Aetna U.S. Healthcare acquired Prudential Health and then sold NYLCares commercial plans to Blue Cross Blue Shield of Texas.
Here is how the top four HMOs in the state now line up, based on June 1999 enrollment reports:
Aetna U.S. Healthcare 860,808 22.8%
HMO Blue 724,808 19.2%
PacifiCare 500,805 13.3%
Humana 486,855 12.9%
Four largest HMOs 68.2%
For more information, see our latest report, Texas Managed Care Review 1999.