Cognizant to acquire HCSC subsidiary TMG Health
TEANECK, N.J.: Cognizant announced it has entered into a definitive agreement to purchase Health Care Service Corporation's (HCSC) subsidiary TMG Health.
As part of the expansion of Cognizant's strategic relationship with HCSC, TMG Health will enter into a new, expanded multi-year service agreement to continue providing information technology, business process and other services to HCSC's various operating units and subsidiaries.
The transaction is expected to close in the third quarter of 2017, subject to satisfaction of the closing conditions, including regulatory reviews. Financial details were not disclosed.
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.
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.
"Cognizant and TMG Health are an ideal strategic fit because we share similar priorities and values when it comes to helping clients deliver superior member-centric care, enable efficient claims processing and efficiently meet state and federal regulatory requirements," said Susan Rawlings Molina, President and CEO at TMG Health.
"Government business lines are expanding, and more payers, big and small, are entering the market. 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."
"Cognizant's TriZetto Facets and QNXT healthcare claims and administration software and systems process more than 30 percent of the nation's managed Medicare lives and over 60 percent of the nation's managed Medicaid lives," said Kaushik Bhaumik, Executive Vice President and global head of healthcare at Cognizant.
"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."
"On an ongoing basis we look at ways to increase our agility and enhance technology to serve our members' evolving needs," said Andy Napoli, Senior Vice President and Chief Customer Service Officer of HCSC.
"By joining forces in this way, Cognizant and TMG Health can combine their unique strengths to accelerate innovation across people, process and technology capabilities so that we can better serve members now and in the future."