Deal: MedCost Acquisition by HPI
HPI Expands Southeast Presence with Acquisition of MedCost
HPI, a health plan provider based in Massachusetts, has made a strategic move to enhance its presence in the Southeast U.S. by acquiring MedCost, a North Carolina-based TPA and PPO network. The deal, which adds approximately 150,000 new members to HPI's portfolio, brings significant market depth to North Carolina, South Carolina, and Virginia.
MedCost, a well-established third-party administrator with over 300 employees and about 100,000 contracted providers, is recognised for its expertise in care management, flexible benefits, and strong provider relationships across the region. Founded in 1983, MedCost has been helping businesses provide high-quality health care via innovative solutions for over 25 years.
The acquisition is a major milestone in HPI's national growth strategy, according to Deborah Hodges, President and CEO at HPI. The deal strengthens HPI's hospital partnerships, enabling direct-to-employer and value-based care strategies that promote better healthcare outcomes.
Key benefits of the acquisition include expanded geographic reach, broader network options and competitive pricing, enhanced operational efficiencies, stronger hospital partnerships, expanded services for multi-state employers and health systems, and complementarity with existing HPI subsidiaries.
The partnership between HPI and MedCost will allow for the delivery of even greater value to HPI's clients, brokers, and partners. It will also not affect MedCost's culture of providing customer-focused service to its employers and members.
The deal provides HPI with broader geographic coverage in North Carolina, South Carolina, and Virginia. Ansley Capital Group's FINRA-registered Broker Dealer, Ansley Securities, LLC, served as HPI's financial advisor for this deal.
The partnership between HPI and MedCost is well-positioned to expand both the MedCost and HPI's Employers Health Network (EHN) presence more broadly. Blake Allison, CEO of EHN, expresses excitement about partnering with MedCost and deepening the mission of partnering with providers to drive high-value healthcare.
In summary, the acquisition positions HPI as a stronger player in the Southeast healthcare market by combining MedCost’s strong local presence and provider relationships with HPI’s data-driven, innovative health plan solutions. This union delivers enhanced network capabilities and expanded coverage to employers and members across the region.
In this expansion, HPI, a Massachusetts-based health plan provider, teams up with MedCost, a North Carolina-based TPA and PPO network, introducing science-driven health-and-wellness solutions to their business model. The fusion of finance and business strategies paves the way for a stronger presence in the Southeast U.S., providing innovative healthcare solutions and competitive financing for employers and members. The acquisition scales up both HPI's and MedCost's operations, with the combined strength of their subsidiaries such as Employers Health Network (EHN), aiming to deliver better healthcare outcomes across various states.
