INScompanies Blog

MIAMI, FL - July 1, 2005 - UnitedHealthcare and Neighborhood Health Partnership (NHP) announced today the signing of an agreement under which NHP will merge with UnitedHealthcare, a business unit of UnitedHealth Group. NHP is a privately-owned health plan serving approximately 135,000 residents, primarily in Miami-Dade County, and with customers in Broward and Palm Beach counties.

Completion of the merger is subject to regulatory approvals which are expected to take approximately 90 days. The purchase price for NHP was not disclosed.

Dan Rosenthal, CEO of UnitedHealthcare’s South Florida health plan, said of the merger, “Both NHP and UnitedHealthcare are focused on providing optimum access to quality, affordable health care. NHP is widely respected for its strong sense of community and the way that it responds to the needs of the people it serves. We appreciate and applaud that commitment, and look forward to the continuing leadership NHP will provide our combined companies in this regard. The deep relationships that NHP has with physicians, hospitals and other providers of health care services in this community are also noteworthy and an attribute we intend to build on in the future. In addition, the quality of NHP’s customer service and products are highly complementary to the strengths UnitedHealthcare has demonstrated in the South Florida marketplace.” Rosenthal concluded that “All of these elements will allow UnitedHealthcare and NHP to work effectively together and respond in an even more positive fashion to the unique health and well-being needs of South Florida and its diverse communities.”

Joseph R. Papa, chairman and CEO of NHP, said, “This merger will allow NHP in the future to offer to its loyal customers the tremendous set of resources available from UnitedHealthcare. Those we serve will have access to a broad array of services outside of our immediate area – such as a health care network of more than 460,000 physicians and health care professionals and 4,200 hospitals nationwide. In addition, our customers will have access to products that can supplement our outstanding local health care services with access to premier centers of clinical excellence for complex, critical health issues such as organ transplants and cancer treatments, should they be needed. UnitedHealthcare’s investments in technology will provide our customers with a simplified administrative experience coupled with useful services such as information on health care costs, best treatment options, and portable electronic personal health records. These features will help us to truly be a consumer-focused company.”

UnitedHealthcare’s South Florida health plan has been a part of Miami-Dade County for nearly 30 years, and serves approximately 400,000 customers in Miami-Dade, Broward, Palm Beach and Martin counties. It offers employers of all sizes a broad portfolio of employee benefit plans, including consumer directed health plans (which include health savings accounts or health reimbursement accounts).

About Neighborhood Health Partnership
NHP is an HMO licensed by the State of Florida and currently operates in Miami-Dade, Broward and Palm Beach Counties. Born out of a coalition between Dimension Physician Hospital Organization and John Alden Insurance, it has been in operation since 1994. In July of 2002, NHP was acquired by private interests from the former provider owners and has grown to become the largest HMO operating in Miami-Dade County since that time. NHP has its principal offices at 7600 Corporate Center Drive in Miami.

www.mynhp.com

MIAMI, FL - April 26, 2005 - In a joint statement, Preferred Care Partners (”Preferred Care”) and Neighborhood Health Partnership (”NHP”) announced today that they have signed a Definitive Agreement in which Preferred Care will acquire the Medicare business of NHP. This transaction will require the approval of the Centers for Medicare and Medicaid Services (”CMS”) and both organizations project a possible effective date of June 1, 2005. The transaction will make Preferred Care the largest privately-owned Medicare Advantage Health Plan in South Florida. NHP will continue to operate its Commercial HMO business in Miami-Dade, Broward and Palm Beach counties.

Mr. Joseph L. Caruncho, Chief Executive Officer of Preferred Care Partners Holding Corp., the parent company of Preferred Care stated that “this acquisition enables us to offer our innovative PSO model to a wider cross section of Medicare beneficiaries in the South Florida Market. We intend to continue the course set by NHP of providing a high level of service to both members and providers.” For NHP members transitioning over to Preferred Care Partners, the change will be seamless and their benefits will remain unchanged for 2005. This acquisition covers all 38,000 members currently enrolled with NHP’s Medicare Advantage program and will bring Preferred Care’s membership to more than 45,000, once it is effective.

Mr. Joseph R. Papa, NHP’s Chairman and Chief Executive Officer stated that “Preferred Care shares our long standing commitment to both seniors and physicians in South Florida, so I know that Preferred Care will continue to provide the type of service and commitment to our members that they have become accustomed to in the past. At a time when specialization by regional managed care plans is more prevalent than ever, this transaction will provide NHP with additional capital resources to focus on an aggressive growth plan for its Commercial business, particularly in Broward and Palm Beach counties while Preferred Care will continue to service and grow a robust Medicare membership in the same region.” Both Caruncho and Papa agree that this will be a positive move forward for both organizations, as well as their members and providers.

“This will be a smooth transition with a continued commitment to being a low hassle partner for physicians and members,” said Justo Luis Pozo, President of Preferred Care. “Our success has been based on empowering physicians, and this transaction will not change that commitment” said Dr. Orlando Lopez-Fernandez, Chief Medical Officer of Preferred Care.

Preferred Care Partners has partnered with Ferrer Freeman & Co., a private equity firm located in Greenwich, CT, that invests exclusively in healthcare and healthcare-related companies, to consummate the acquisition.

Preferred Care is a Provider Sponsored Health Plan contracted with CMS to offer Medicare Advantage plans to Medicare beneficiaries in the South Florida market. Its unique PSO model focuses on empowering physicians to make clinical decisions for their patients in a manner that reduces costly administration. Since beginning operations as a Medicare Advantage Plan in 2002, the Company has seen significant growth and was named the fastest growing, privately held company in South Florida by the South Florida Business Journal. Its principal offices are located at One Datran Center, 9100 S. Dadeland Blvd., Suite 1250, Miami, Florida.

NHP is an HMO licensed by the State of Florida and currently operates in Miami-Dade, Broward and Palm Beach Counties. Born out of a coalition between Dimension Physician Hospital Organization and John Alden Insurance, it has been in operation since 1994. In July of 2002, NHP was acquired by private interests from the former provider owners and has grown to become the largest HMO operating in Miami-Dade County since that time. NHP has its principal offices at 7600 Corporate Center Drive in Miami.

http://www.mynhp.com