Evolent Health acquired assets from New Mexico Health Connections, which will allow the companies to operate a new health plan.
Here are five things to know:
1. The acquisition was first announced on Sept. 27 and closed on Jan. 2. Evolent acquired assets related to New Mexico Health Connection's commercial business for $10.25 million in cash.
2. The acquisition resulted in a managed service organization called True Health New Mexico, which will serve as an alternative health plan in the New Mexico commercial market. Former NMHC CEO, and current True Health New Mexico CEO, Dr. Martin Hickey said, "Working with our physician partners, we will continue to deliver differentiated care to our members and see multiple potential opportunities to grow True Health New Mexico."
3. NMHC expects to continue operations as an independent nonprofit healthcare organization in New Mexico while True Health New Mexico will enter into managed service agreements with NMHC to support its individual business.
4. Evolent expects to extend a 15-month capital-only reinsurance agreement to NMHC, predicted to reach around $10 million, with True Health New Mexico underwriting the contract.
5. As of Dec. 31, 2017, True Health New Mexico covered just under 20,000 members.