BLOOMFIELD, Conn. & PISCATAWAY, N.J., January 26, 2015 - Cigna (NYSE: CI) has entered into an agreement to purchase New Jersey-based QualCare Alliance Networks, Inc. ("QANI") The agreement combines Cigna's broad and integrated portfolio of health-related products and services and national scale with QANI's expertise and capabilities in working with hospital systems to drive innovation, affordability and value.
The transaction is expected to close in the first quarter of 2015, following customary regulatory approvals.
QANI will continue to offer its full suite of existing products and services and will continue to be led by Annette Catino, QANI's founder and chief executive officer. Cigna and QANI together will focus on locally-tailored innovations to drive customer engagement and meet personal health needs. They will also offer hospital systems and physician groups a broad suite of both managed services and solutions. Examples include multi-tier plan administration, population analytics, performance reporting and management, clinical benchmarking and other services.
"Cigna's goal is to deliver affordable health care solutions that provide greater value and better health outcomes and experience for our customers," said Matt Manders, president of U.S. commercial markets and global health care operations for Cigna. "This acquisition is an example of Cigna's ongoing commitment to being a partner of choice to health care professionals and hospital systems. It demonstrates our focus on partnering with systems and physician groups to deliver next generation health care models."
"The era of providers relying on volume of care and illness is over. The future is one of serving local communities and focusing on wellness," said John K. Lloyd, chairman, Board of Directors, QualCare Alliance Networks, Inc. and CEO of Meridian Health. "Today's decision to have QualCare Alliance Networks join Cigna Corporation will ensure QualCare's success in this changing environment and enhance the value it can bring to its local communities."
Headquartered in Piscataway, New Jersey, QANI serves approximately 200,000 customers in self-funded health plans and has more than 900,000 customer relationships, including network access arrangements for workers' compensation and other products. It is currently owned by 16 non-profit hospitals and physician-hospital organizations, with a clientele that spans health systems, unions, local governments, school boards, and other commercial employers.
Cigna Corporation (NYSE: CI) is a global health service company dedicated to helping people improve their health, well-being and sense of security. All products and services are provided exclusively by or through operating subsidiaries of Cigna Corporation, including Connecticut General Life Insurance Company, Cigna Health and Life Insurance Company, Life Insurance Company of North America and Cigna Life Insurance Company of New York. Such products and services include an integrated suite of health services, such as medical, dental, behavioral health, pharmacy, vision, supplemental benefits, and other related products including group life, accident and disability insurance. Cigna maintains sales capability in 30 countries and jurisdictions, and has approximately 85 million customer relationships throughout the world. To learn more about Cigna®, including links to follow us on Facebook or Twitter, visit www.cigna.com.
About QualCare Alliance Networks, Inc.
QualCare Alliance Networks, Inc. (QANI) was founded in 1993 to serve as the parent organization to the following companies: QualCare, Inc., New Jersey's largest, provider-sponsored, managed care company; Qual-Lynx, a workers' compensation managed care provider and multi-state third party administrator for property, casualty and workers' compensation; Health-Lynx, the region's backbone for establishing Accountable Care Organizations; QualCare Captive Insurance Company, Inc., the first sponsored cell captive insurance structure approved by the Captive Division in New Jersey; and QualCare Management Resources, Inc., a newly-created company which provides insurance management and financial services to regulated insurance programs. Through its leadership team and Board of Directors, QANI oversees management and operations for all five companies.
CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You may identify forward-looking statements by the use of words such as "believe", "expect", "plan", "intend", "anticipate", "estimate", "predict", "potential", "may", "should", "will" or other words or expressions of similar meaning, although not all forward-looking statements contain such terms. Forward-looking statements are based on Cigna's current expectations and projections about future trends, events and uncertainties. These statements are not historical facts. Forward-looking statements may include, among others, the expected closing date for the acquisition, the anticipated benefits of the pending acquisition to Cigna, the impact of the pending acquisition on affordability, improved health care outcomes and experience for customers, the capabilities that QANI will provide to Cigna and the future of the health care industry, as well as QANI's projections as to the impact of the acquisition on its business and growth. Forward-looking statements are subject to risks and uncertainties, both known and unknown, that could cause actual results to differ materially from those expressed or implied in forward-looking statements. Such risks and uncertainties include, but are not limited to: the timing to consummate the proposed acquisition; the risks that a closing condition to the acquisition may not be satisfied or a regulatory approval required may be delayed, not obtained or subject to conditions not anticipated; Cigna's ability to achieve its financial, strategic and operational plans or initiatives; the ability to realize the expected benefits of strategic transactions and/or acquisitions, including, but not limited to, the acquisition of QANI; the post-closing performance of the QANI business; and the ability to predict and manage medical costs and price effectively and develop and maintain good relationships with physicians, hospitals and other health care providers, as well as more specific risks and uncertainties discussed in our most recent report on Form 10-K and subsequent reports on Forms 10-Q and 8-K available on the Investor Relations section of www.cigna.com. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance or results, and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Cigna undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.