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Cognizant to Acquire Health Care Service Corporation’s Unit TMG Health

by HITC Staff 06/13/2017 Leave a Comment

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Cognizant Acquires TriZetto for $2.7 Billion In Cash

Cognizant has entered an agreement to acquire Health Care Service Corporation (HCSC) subsidiary TMG Health, a leading national provider of expert solutions for Medicare Advantage, Medicare Part D and Managed Medicaid plans. As part of the acquisition, TMG Health will continue to provide information technology, business process and other services to HCSC’s operating units and subsidiaries.  

The combination of capabilities from TMG Health and both Cognizant’s Digital Operations and Digital Systems and Technology practices will enhance Cognizant’s business process platforms and strengthen its scalable business process-as-a-service (BPaaS) solution for the government and public health program markets. The BPaaS model provides the technology and operational foundation insurers need to manage their government lines of business so they can 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.

TMG Health, an HCSC subsidiary since 2008 with offices in Pennsylvania and Texas, is a leading national provider of business process services to the Medicare Advantage, Medicare Part D and Managed Medicaid markets in the U.S., supporting 32 client plans and more than 4.3 million members in all 50 states. TMG Health’s healthcare business and technology professionals will become employees of Cognizant upon the close of the acquisition.

 

“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.”

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Tagged With: Cognizant, Healthcare Mergers & Acquisitions

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