Ziegler Advises Carefirst Bluecross Blueshield On Its Acquisition Of University Of Maryland Health Partners & University Of Maryland Health Advantage

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Ziegler, a specialty investment bank, is pleased to announce its role in advising CareFirst BlueCross BlueShield (CareFirst) in the acquisition of University of Maryland Health Partners (UMHP) and University of Maryland Health Advantage (UMHA) from The University of Maryland Medical System (UMMS). UMMS is a university-based regional care health system focused on serving the health care needs of Maryland residents, bringing innovation, discovery, and research to the healthcare system and educating the state’s future physician and health care professionals through its partnership with the University of Maryland School of Medicine and the UM Schools of Nursing, Pharmacy, Social Work and Dentistry in Baltimore. As one of the largest private employers in the State, the health system’s 28,000 employees and 4,000 affiliated physicians provide primary and specialty care in more than 150 locations at 13 hospitals. UMHP is a 47,000 member Managed Medicaid plan, operating in 21 of 24 Maryland counties through a network of 38 hospitals, 14 FQHCs and over 10,000 physicians. UMHA is a 6,000 member Dual Special Needs (DSNP) Medicare Advantage plan which operates in 15 of 24 Maryland counties with a similar network to UMHP. UMMS acquired UMHP and UMHA in a 2015 transaction with Riverside Health, Inc. in order to align its operations vertically into the payor space.

Chris Hendrickson, Managing Director, in Ziegler's Healthcare Corporate Finance practice, stated, "CareFirst has built an outstanding reputation as the largest health insurer in the Mid-Atlantic region, with the largest network of physicians in its area...

Ziegler, a specialty investment bank, is pleased to announce its role in advising CareFirst BlueCross BlueShield (CareFirst) in the acquisition of University of Maryland Health Partners (UMHP) and University of Maryland Health Advantage (UMHA) from The University of Maryland Medical System (UMMS). UMMS is a university-based regional care health system focused on serving the health care needs of Maryland residents, bringing innovation, discovery, and research to the healthcare system and educating the state’s future physician and health care professionals through its partnership with the University of Maryland School of Medicine and the UM Schools of Nursing, Pharmacy, Social Work and Dentistry in Baltimore. As one of the largest private employers in the State, the health system’s 28,000 employees and 4,000 affiliated physicians provide primary and specialty care in more than 150 locations at 13 hospitals. UMHP is a 47,000 member Managed Medicaid plan, operating in 21 of 24 Maryland counties through a network of 38 hospitals, 14 FQHCs and over 10,000 physicians. UMHA is a 6,000 member Dual Special Needs (DSNP) Medicare Advantage plan which operates in 15 of 24 Maryland counties with a similar network to UMHP. UMMS acquired UMHP and UMHA in a 2015 transaction with Riverside Health, Inc. in order to align its operations vertically into the payor space.

In its 83rd year of service, CareFirst, an independent licensee of the Blue Cross and Blue Shield Association, is a not-for-profit health care company which, through its affiliates and subsidiaries, offers a comprehensive portfolio of health insurance products to 3.4 million individuals and groups in Maryland, the District of Columbia and Northern Virginia. In 2018, CareFirst invested $43 million to improve overall health, and increase the accessibility, affordability, safety and quality of health care throughout its market areas.

“The University of Maryland Medical System and CareFirst have always been strong allies and the acquisition of UMHP and UMHA further solidifies that alignment,” said Mohan Suntha, MD, MBA, President and CEO of UMMS. “More importantly, it ensures our Medicaid and Medicare enrollees have uninterrupted access to comprehensive health coverage and care through partnership with a Maryland-based, not-for-profit health plan. Delivering high quality, compassionate care is fundamental to the missions both UMMS and CareFirst serve and we are confident that UMHP and UMHA enrollees will benefit from CareFirst’s expertise in the market.”

“This partnership brings the best capabilities of CareFirst and UMMS together in a new model and is part of our broader efforts designed to deliver care focused on value and improved health outcomes. Our work with the UMMS team will provide opportunities for deeper collaboration and innovation designed to bring our shared communities greater value, expanded access to high quality care, better consumer experiences, and more equitable care for all Maryland residents,” said CareFirst President & CEO Brian D. Pieninck.

Chris Hendrickson, Managing Director, in Ziegler's Healthcare Corporate Finance practice, stated, "CareFirst has built an outstanding reputation as the largest health insurer in the Mid-Atlantic region, with the largest network of physicians in its area, leading customer support and member engagement capabilities, and innovative programs including its Patient Centered Medical Home Program (PCMH). These transactions allow it to expand beyond its core strength in commercial insurance to the government space."

CareFirst is bringing UMHP and UMHA into its not-for-profit organizational structure to better align with its mission. CareFirst is integrating UMMS’ staff and infrastructure with CareFirst operations over a multi-year transition period.

Ziegler's Corporate Finance team is focused on delivering best-in-class advisory and financing solutions for companies and organizations across the healthcare industry. In our core practice areas of healthcare services, information technology, hospitals and senior living, Ziegler is one of the most active M&A firms offering innovative sell-side, buy-side, recapitalization/restructuring, equity private placement and strategic partnering services.

For more information about Ziegler, please visit us at http://www.ziegler.com.

About Ziegler:
Ziegler is a privately held investment bank, capital markets and proprietary investments firm. Specializing in the healthcare, senior living and education sectors, as well as general municipal and structured finance, enables Ziegler to generate a positive impact on the clients and communities it serves. Headquartered in Chicago with regional and branch offices throughout the United States, Ziegler provides its clients with capital raising, strategic advisory services, equity and fixed income sales & trading and research. To learn more, visit http://www.ziegler.com.

Certain comments in this news release represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. This client’s experience may not be representative of the experience of other clients, nor is it indicative of future performance or success. The forward-looking statements are subject to a number of risks and uncertainties, in particular, the overall financial health of the securities industry, the strength of the healthcare sector of the U.S. economy and the municipal securities marketplace, the ability of the Company to underwrite and distribute securities, the market value of mutual fund portfolios and separate account portfolios advised by the Company, the volume of sales by its retail brokers, the outcome of pending litigation, and the ability to attract and retain qualified employees.

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