VUMC to acquire health plans' management company
Vanderbilt University Medical Center has entered into an agreement to purchase THG Management Services Inc., a Nashville-based operator of managed care plans.
Financial terms of the agreement were not disclosed. As part of the acquisition, Vanderbilt Health Plans will assume management of THG's TriPoint Health Plan, which operates HMOs in Tennessee, Kentucky and Arkansas.
THG had until recently managed Vanderbilt's health plans, which include Health 1-2-3, Health 1-2-3 Platinum and VHP Community Care. The impending acquisition will lay to rest a disagreement centered on the plans' management, said Dr. James K. Geraughty, associate vice chancellor for Health Affairs.
The more than 47,000 people covered by the various plans should not notice any changes or disruption in service, Geraughty said.
"This is the best possible outcome for all members of our plans," he said. "This gives us many opportunities which should benefit all of our providers and members. They should not experience any disruptions due to these changes."
The impending acquisition is currently in the due diligence phase, with both parties examining financial and legal aspects of the transaction. It then must meet with state regulatory approval, a process expected to take about 60 days, Geraughty said.
The agreement is not expected to impact the THG staff, but senior THG leadership ‹ including Tom Nagle, Randal Farr, Trigg James and Barbara Bennett ‹ will not remain with the company once the acquisition is complete. The four will sign agreements not to compete with TriPoint or the Vanderbilt health plans.