United Payors acquires ProAmerica of Texas

Maryland Watch

December 22, 1998

United Payors & United Providers Inc., a Rockville-based financial services company supporting the health care industry, said yesterday that it acquired ProAmerica, an operating subsidiary of UnitedHealth Group, for an undisclosed sum.

ProAmerica, an Arlington, Texas-based network of health care providers, is expected to record revenue of about $13 million in 1998.

The combined operations of UP&UP and ProAmerica are expected to exceed $100 million in revenue in 1999, said Ed Civera, UP&UP president and chief operating officer.

The subsidiary's operations will remain in Arlington, Civera said.

UP&UP has a network of acute-care hospitals, rehabilitation and outpatient surgical care centers.

The company helps health insurance companies and clients shave health costs by offering a national network of health care providers, including hospitals and physicians groups.

The ProAmerica acquisition is expected to have a positive impact on UP&UP's earnings per share beginning in the second quarter of 1999, said Joe Bruno, UP&UP's chief financial officer.

Pub Date: 12/22/98

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