COLUMBUS, Ohio, Jan. 4 /PRNewswire/ -- Ion Health Holdings, Inc. today announced the acquisition of Community Health Plan of Ohio (CHPO), a health insuring corporation, and said that it will file with state regulators for permission to operate as a Medicaid managed care plan in eight Ohio counties.
Ion Health Holdings' purchase of CHPO has been approved by the Ohio Department of Insurance. The company will operate as a licensed health maintenance organization (HMO) under the name Ion Health of Ohio. It follows last month's announcement that Ion Health Holdings had received a commitment of $200 million in private equity funding. At that time, the company said it would seek to expand as opportunities became available. Today's announcement marks the first of several planned acquisitions.
Company officials said they will seek a contract from the Ohio Department of Job and Family Services (ODJFS) to operate Ion Health of Ohio as a Medicaid HMO in Butler, Clark, Franklin, Hamilton, Lorain, Mahoning, Montgomery and Trumbull counties, covering three of the state's five most populated counties. ODJFS figures show that, if approved, Ion Health of Ohio could provide healthcare access to more than 445,000 people in the eight counties; all of them covered under either the state's Healthy Families or Healthy Start programs.
The applications will be filed within several days under the state's Open Procurement regulations. The officials said they will work cooperatively with ODJFS, and hope for rapid approval of the applications.
"We look forward to building a solid network in Ohio that delivers significant value to members, providers and taxpayers alike," said Anthony Horbal, Ion Health Holdings' Founder and Chief Executive Officer. "We are financially strong, and have a clear vision for providing access to high- quality healthcare throughout the state that helps keep people well." Horbal noted that managed care plans like Ion Health have been repeatedly shown to help reduce costs by working in partnership with doctors and hospitals to actively promote preventive care, which helps people stay well.
Ion Health began enrolling men, women and children in its Pennsylvania plan last spring, becoming the first new managed healthcare plan in that state in seven years to serve the Medicaid-eligible population. It has rapidly enrolled members in the counties where it is licensed to operate, far exceeding initial projections. Ion Health has also built strong ties with community-based organizations, such as the YMCA and school districts, enabling it to better serve the public. Horbal said Ion Health of Ohio will continue that level of active participation; ultimately, he said, the company would like to have a presence in each of Ohio's 88 counties.
Through its purchase of CHPO, Ion Health of Ohio assumes an already contracted provider network, giving the company a time-to-market advantage as it seeks permission from ODJFS to begin enrolling members. The company said it will use advanced technology to provide state-of-the-art claims processing, ensuring prompt payment of claims from health providers, and intends to partner with a full range of healthcare providers to more effectively deliver services.
"Ohio's taxpayers spent more than $2.1 billion in 2003 providing healthcare to our target population; we are aware of our duty to help control those costs in an honest and responsible manner. It is our goal to help keep our members healthy and improve their quality of life, while establishing positive partnerships with the doctors and organizations that provide that care. We look forward to a long, cooperative, and productive presence in Ohio," Horbal noted.
Ion Health Holdings, Inc.CONTACT: Steve Friedberg, MMI Communications, +1-610-518-7474,steve@mmicommunications.net, for Ion Health Holdings, Inc.
