Cigna Corp. announced Tuesday it has acquired a Chicago company that provides in-home care to chronically ill and elderly patients.
Cigna acquired Alegis Care, formerly Home Physicians, from the private equity firm Triton Pacific Capital Partners.
Terms of the agreement, including the price Cigna paid, were not disclosed. Neither Cigna nor Triton Pacific Capital would disclose annual revenue figures for Alegis Care.
Alegis Care was founded in 1995 and serves about 31,000 customers in 10 states, including Cigna-HealthSpring customers in Delaware, Illinois, Maryland, Pennsylvania and Washington, D.C. It has between 100 and 200 employees, which includes nurses and care coordinators for patients who are physically unable to leave their home.
Alegis Care provides the chronically ill and elderly with physician services while also coordinating health care for patients at their home.
Cigna plans to use Alegis Care’s services for is Medicare Advantage customers with the hope of improving care and reducing cost. For example, if homebound Medicare patients are unable to leave their houses to get basic preventive clinical care, bringing the care to them will hopefully reduce expensive hospital visits.
Cigna and other health insurers are trying to get a larger share of the Medicare market, which will continue to swell as Baby Boomers reach the Medicare eligibility age of 65.
In October 2011, Cigna announced plans to buy HealthSpring of Nashville, Tenn., for $3.8 billion. HealthSpring is a health plan with more than 1 million Medicare and Medicaid customers in Alabama, Arizona, Arkansas, Delaware, Florida, Georgia, Illinois, Maryland, Mississippi, New Jersey, Oklahoma, Pennsylvania, Tennessee, Texas, West Virginia and Washington, D.C.