Coventry Health Care to Acquire Preferred Health, Boost Midwest Presence

Bethesda, Md.-based Coventry Health Care announced that it has agreed to acquire Preferred Health Systems of Wichita (Kan.), according to a report in The Washington Post.

Through the acquisition, Coventry will add around 100,000 new customers, increasing its presence to 1 million members in six Midwestern states, according to the report. The deal will also establish a partnership between Coventry and Preferred Health's current owner, Via Christi Health System, the largest provider of healthcare services in Kansas.

The acquisition has been seen as an attempt by Coventry to return to its roots, by trying to be a player in markets other healthcare providers take for granted, according to the report. Coventry has seen its profits shrink over the past few years due to the economy and reaching beyond its "core competencies."

Financial details were not released, and a final deal is expected to take 90-120 days.

Read the Washington Post's report about the Coventry's acquisition of Preferred Health.