Cognizant to acquire HCSC subsidiary TMG Health

COIMBATORE: Cognizant on Tuesday announced that it has entered into a definitive agreement to purchase Health Care Service Corporation’s (

HCSC

) subsidiary

TMG Health

.

The transaction is expected to close in the third quarter of 2017, subject to satisfaction of the closing conditions, including regulatory reviews, the company said. Financial details were not disclosed.

TMG Health, an HCSC subsidiary since 2008, with offices in Pennsylvania and Texas, is a leading provider of business process services to the Medicare Advantage, Medicare Part D and Managed Medicaid markets in the US, supporting 32 client plans and more than 4.3 million members in all 50 states.

TMG Health’s healthcare business and technology professionals will become employees of Cognizant upon the close of the transaction.

“The combination of capabilities from TMG Health, Cognizant’s digital operations, and digital systems and technology practices will further strengthen Cognizant’s scalable business process-as-a- service (BPaaS) solution for the government and public health program markets,” the company said.

A BPaaS model provides insurers with a technology and operational foundation for the efficient management of their government lines of business, enabling them to focus on strategic growth at a predictable cost while aligning quality, standards, risk and compliance across their programs.

“Building on Cognizant’s 2014 acquisition of healthcare technology provider

TriZetto

, the addition of TMG Health will extend Cognizant’s market leadership and expand the breadth of its digital transformation solutions for healthcare payers and providers,” the company said.

“We believe there is a growing opportunity for our experienced teams to work together to help current and future clients succeed in highly regulated, cost- and compliance-driven markets,” said Susan Rawlings Molina, president and CEO, TMG Health.

“Government business lines are expanding, and more payers, big and small, are entering the market,” she said.

“The addition of TMG Health’s capabilities and experts to our healthcare portfolio will enable all of our payer clients to embrace new digital opportunities with their growing government business lines, be more competitive and respond quickly to changes in these critical markets with increased efficiency from member enrollment through care management, under a predictable, cost-effective BPaaS model,” said Kaushik Bhaumik, executive vice-president and global head of healthcare at Cognizant.


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