A private equity firm in New York City has acquired Oklahoma City-based GlobalHealth Inc. insurance.
The sale to Kinderhook Industries was announced Wednesday by Allegiance Capital Corp., the Dallas-based mergers and acquisitions investment bank that facilitated the purchase. Financial terms were not disclosed.
GlobalHealth Chief Executive Scott Vaughn said the acquisition will allow his company to offer health insurance to more Oklahomans and lower the cost of health care.
His company, Vaughn said, needed more cash reserves to satisfy the state Insurance Department’s higher requirements for regulatory capital should it meet its goal of covering more lives, and also to acquire private physician practices, a strategy GlobalHealth has found results in more efficient, affordable care, he said.
GlobalHealth, which employs 230 with annual revenues of $170 million, offers the most popular, and lowest-cost insurance plan — a home maintenance organization — among state employees. In addition to the 40,000 lives it covers through that plan, GlobalHealth in January 2013 began offering Medicare Advantage plans and, in October, became one of five companies offering insurance in Oklahoma’s new federally-run online health insurance marketplace.
To date, GlobalHealth has sold individual policies covering only about 1,000 lives in the new marketplace, “But we want to make our insurance available to as many Oklahomans who want it,” said Vaughn, who expects double-digit annual growth this year.
GlobalHealth’s provider network for policyholders covers about 75 percent of the state’s counties, he said.
Vaughn believes his company can gain more individual market share through its customer service. “Live persons answer the phone when you call us for help with issues,” he said.
The company also strives to better manage care and subsequently costs, he said, through case managers who frequently check in, and monitor medication and other compliance, with the 20 percent of diabetic and other chronically-ill patients responsible for 80 percent of the costs.