The deal brings together two companies with strong pharmacy clinical management programs, DME/HHC products, and somewhat different target markets. Modern has a solid customer base among self-insureds and on the West Coast. HCS has a broader product portfolio, offering networks, bill review, and other WC managed care services to large and mid-tier insurers.
This was the second recent transaction for Duluth, GA based HCS; a year ago the company purchased PBM ScripNet, adding a strong presence in the southwest and several marquee clients.
The deal is also the second PBM transaction in the last seven days, coming just a week after the announcement that Kelso and Stone Point are acquiring PMSI, which will be combined with Progressive/Stone River. It also follows the Mitchell transaction, while other sources indicate OneCall Care Management is also exploring an equity event.
There are at least a couple other shoes still to drop, as the private equity industry continues its pursuit of any and every asset doing business in the workers’ comp industry.
Regarding the HCS-Modern transaction, no official word out from either entity as of yet; stay tuned for further developments…
For more on what’s going on and why, read this.