Amerigroup sells state operations after DOJ antitrust review
Amerigroup has agreed to sell its Virginia operations to health provider Inova after the U.S. Department of Justice's antitrust queries into WellPoint's $4.9 billion acquisition of the managed care insurer.
Since both Amerigroup and WellPoint have extensive operations in Virginia, the DOJ requested additional information as it reviewed the pending acquisition, focusing on Amerigroup's Virginia operations, which cover 55,000 members and operate in 58 cities and counties, the Dow Jones Newswires reported.
By selling its Virginia operations to Inova, a nonprofit five-hospital healthcare system in the Washington, D.C., metro area, Amerigroup will help avoid any potential antitrust issues with the WellPoint acquisition, which was announced in July, Reuters reported.
However, the sale won't change the acquisition agreement, which still should close as expected, in August, reported Insurance & Financial Advisor.
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