HealthSmart Completes Acquisition of Wells Fargo TPA

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Transaction Creates the Second Largest Medical Third Party Administrator in the United States

HealthSmart Holdings Inc., confirmed that effective December 31, 2011, it has completed its acquisition of Wells Fargo Third Party Administrators, Inc., the medical third-party administration (TPA) business of Wells Fargo Insurance Services USA, Inc. ― part of Wells Fargo & Company. Terms of the transaction, first announced in October, were not disclosed.

Wells Fargo TPA offers employee benefits and claims administration services for employers. HealthSmart will acquire all of the operating assets and related liabilities of the TPA. As part of the transaction, nearly 600 Wells Fargo TPA employees will join HealthSmart. HealthSmart will assume the leases for office locations in Charleston, West Virginia; Anchorage, Alaska; Juneau, Alaska; Fayetteville, North Carolina and Newnan, Georgia. With this acquisition, HealthSmart now has annual revenues of more than $100 million, employs more than 1,000 workers, and manages more than $5 billion in claims.

Daniel D. Crowley, Chairman of HealthSmart, commented: “The combination of Wells Fargo TPA and HealthSmart creates the second largest non-carrier owned TPA in the country. With an Eastern U.S. presence to complement our current Texas, Colorado, Ohio, and California locations, we now have service and distribution capabilities not currently available through our competitors. We look forward to serving the clients of Wells Fargo TPA, to an ongoing relationship with Wells Fargo Insurance Services, and to strengthening the relationships in all of the regions where we have a presence.”

Jim Pennington, President of HealthSmart and a native of West Virginia, said: “My 16 year history with this organization in its early years as McDonough Caperton makes this personally rewarding, and it has been exciting to re-engage with the organization and the many fine people affiliated with it. The West Virginia location will provide HealthSmart with an Eastern base from which to expand nationally and the ongoing relationship with Wells Fargo Insurance Services creates a strategic vehicle for additional growth. HealthSmart is a terrific company, and we welcome the clients and employees of Wells Fargo TPA."

Wells Fargo Insurance Services will continue to distribute medical TPA products and services to its customers using HealthSmart’s broad networks and capabilities.

About HealthSmart
HealthSmart Holdings, Inc. is a healthcare solutions company that manages more than $5 billion in claims annually. The company's headquarters is in Irving, Texas, with service locations around the country. The HealthSmart companies are dedicated to delivering integrated, self-funded solutions via innovative products and services, including benefit administration, provider networks and care management. HealthSmart’s mission is to improve member health and reduce healthcare costs.

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Duane Beckner
HealthSmart
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