VALUE BEHAVIORAL HEALTH: CLEARS WAY FOR COLUMBIA/HCA DEAL
Columbia Healthcare Corp. is set to acquire Connecticut-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.
based Value Behavioral Health Inc. after Value Health "sold its
50% interest" in Massachusetts Behavioral Health Partnership,
Boston Globe reports. FHC Options, which already owned 50% of
the partnership, bought Value Health's portion for an undisclosed
amount. The deal, effective yesterday, "comes after a June 27
injunction blocked the $1.3 billion sale of Value Health Inc. --
the parent company of Value Behavioral Health -- to Nashville-
based Columbia" (see AHL 6/19).
STOP THE SALE!
The injunction, ordered on grounds that the sale would
create a conflict of interest under the state's Medicaid
contract, was issued after FHC Options filed suit to stop the
sale. According to Globe, Options claimed the merger "would
violate the partnership's managed care contract, which prohibited
FHC Options and Value Health from having a financial interest in
any of the hospitals that take Medicaid mental health patients"
(Merritt, 7/16). Columbia already owns MetroWest Medical Center
and is in the process of purchasing Neponset Valley Health
Systems. The transaction is expected to close later this month,
pending the resolution of regulatory matters concerning the State
of California Department of Corporations (Value Health release,