A New York-based private equity firm has bought the Oklahoma City-based GlobalHealth Inc. insurance company in order to expand the company’s services and lower existing costs.
The acquisition by Kinderhook Industries was announced investment bank Allegiance Capital Corp. that facilitated the deal.
GlobalHealth CEO Scott Vaughn allowed the merger to go through in order that his firm would be able to offer health insurance to more customers at lower rates.
GlobalHealth has over 230 employees and annual turnover of $170 million, catering for state employees with the lowest-cost insurance plan.
This plan covers 40,000 lives and in January last year, the company began offering Medicare Advantage plans. It is 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.
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