MedUnite Acquires NDCHealth’s Network Services
MedUnite, a seven-insurer, San Diego-based consortium designed to address "physician complaints about administrative hassles" in the insurance industry, has agreed to acquire the physician-network services of NDCHealth to bolster insurers' ties with doctors, the Wall Street Journal reports (Rundle, Wall Street Journal, 6/5). Under the deal, MedUnite will have access to 70,000 physicians offices, Medicare, Medicaid and Blue Cross and Blue Shield plans that use NDCHealth's transaction processing services. In return, NDCHealth will receive an equity position in MedUnite and a seat on the consortium's board (Knox, Philadelphia Inquirer, 6/5). NDCHealth will retain ownership of its practice-management software systems, but is selling the electronic network linking physicians' computers to insurance companies. The Journal reports that the "transaction will help MedUnite attract physicians who are currently using NDCHealth's electronic data transmission systems" (Wall Street Journal, 6/5). NDCHealth will "team up" with the consortium to sell MedUnite's Internet services (Philadelphia Inquirer, 6/5). MedUnite is testing a software system that will allow doctors to submit claims to several health insurers through one Internet portal. The system would allow physicians to check patients' coverage and seek approval from insurers before making referrals to specialists (Wall Street Journal, 6/5).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.