Collab Health, a wholly owned subsidiary of Catholic Health Initiatives, has executed a stock-purchase agreement to acquire QualChoice Holdings, Inc.
Catholic Health Initiatives (CHI), one of the nation’s largest nonprofit health systems, operates St. Vincent Health System in Little Rock. CHI announced on Tuesday that it would acquire Mercy’s hospital in Hot Springs, Ark.
Terms of the QualChoice deal were not disclosed. The acquisition must still receive regulatory approval from the Arkansas Insurance Department.
Little Rock-based QualChoice Holdings is the parent company of QCA Health Plan, Inc., and QualChoice Life and Health Insurance Company Inc.
The transaction will provide Catholic Health Initiatives with ownership and control of QualChoice Holdings. QualChoice administers health insurance plans and is licensed in all 75 counties in Arkansas.
“CHI, through St. Vincent Health System, has been a partner with QualChoice since our inception and we are excited to now be a part of a national organization of such high quality,” said Mike Stock, CEO of QualChoice Holdings. “We have always had an excellent relationship with St. Vincent and look forward to working as part of Catholic Health Initiatives in the future.”
“Making an investment in a quality health plan such as QualChoice is integral to CHI’s population health strategies, which we believe will help improve the future of affordable access to health and wellbeing for the people of Arkansas and many other communities we serve,” said Juan Serrano, CHI’s senior vice president, payer strategy and operations. “We regard Arkansas as a fantastic place to develop our health insurance capabilities as we strive to better serve communities here and across the nation.”