Marking a significant milestone, HPI, a leading Third-Party Administrator (TPA), has acquired MedCost, a North Carolina-based TPA. This strategic acquisition enhances HPI and its subsidiaries' ability to serve multi-state employers and health system clients by expanding national capabilities, improving network access and pricing, and offering more flexible tiered and narrow network strategies.
WESTBOROUGH, Mass., July 24, 2025 /PRNewswire-PRWeb/ -- HPI, a national leader in self-funded health plan solutions, today announced the acquisition of MedCost, LLC, a North Carolina-based third-party administrator (TPA) and proprietary PPO network. This strategic acquisition significantly expands HPI's geographic footprint, strengthens its network offerings, and enhances its ability to deliver innovative, cost-effective healthcare solutions to employers across the Southeast.
Founded in 1983, MedCost has built a strong reputation for its integrated care management, flexible benefit design capabilities, and deep provider relationships across North Carolina, South Carolina, and Virginia. With over 300 employees and a network of approximately 100,000 contracted providers, MedCost will bring over 150,000 members to the HPI family.
HPI, headquartered in Westborough, Massachusetts, delivers customized health plan solutions that empower employers to meet their financial and member health goals through market-leading analytics and creative strategies.
"This acquisition marks a major milestone in our national growth strategy," said Deborah Hodges, President and CEO at HPI. "MedCost brings a powerful combination of regional expertise, network ownership, and care management capabilities that align perfectly with HPI's mission to reduce healthcare costs and improve member outcomes. Together, we will deliver even greater value to our clients, brokers, and partners."
Key benefits of the acquisition include:
- Expanded geographic reach in North Carolina, South Carolina, and Virginia.
- Competitive network access and pricing, enabling flexible tiered and narrow network strategies.
- Operational synergies to improve efficiency and value.
- New opportunities to serve multi-state employers and health system clients with expanded national capabilities.
- Stronger hospital partnerships to support direct-to-employer and value-based care strategies.
"We are excited to be part of the HPI family and for this transformative new chapter," said Marcia Harrison, Vice President, Transformation, with MedCost. "This will allow us to expand our capabilities, while continuing our culture of providing customer-focused service to our employers and members. For more than 25 years, we have helped businesses provide high-quality health care via innovative solutions. We're excited about the possibilities ahead as part of HPI, who shares similar values and our commitment to the customer."
The acquisition also supports HPI's broader collaboration with its subsidiary, Employers Health Network (EHN), extending valuable network access into new markets.
"We are humbled and excited to be partnered with MedCost," said Blake Allison, CEO of EHN. "As a leader in developing strong regional networks and provider partnerships throughout the Southeast, the opportunity to develop creative network solutions for our clients will further deepen our mission of partnering with providers to drive high-value healthcare. We are also well-positioned to expand both the MedCost and EHN presence more broadly as part of our continued growth as a leader in deploying high-performance network solutions."
Ansley Capital Group's FINRA-registered Broker Dealer, Ansley Securities, LLC, acted as HPI's financial advisor on this transaction.
About HPI
HPI redefines what is possible with self-funded health plans. As a leading national third-party administrator, they partner with health plan brokers and employers to provide innovative self-funding strategies and customized plans tailored to each client's needs and population. HPI's solutions give employers greater cost transparency and control, while elevating the member experience. Their entrepreneurial spirit, flexible approach, and personalized service has helped to serve clients of all sizes across all industries, delivering novel strategies that make the most of every healthcare dollar.
For more information, visit www.hpiTPA.com
About MedCost
MedCost, LLC, is a proprietary PPO network and care management company based in North Carolina. Formerly owned by Advocate Health, MedCost has served employers across North Carolina, South Carolina, and Virginia for over four decades, offering integrated network, care management, and administrative services through its TPA, MedCost Benefit Services.
For more information, visit www.medcost.com
Media Contact
Su Doyle, HPI, 1 508-475-6103, [email protected], hpiTPA.com
SOURCE HPI
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