Nasdaq-listed IT services tech giant Cognizant said it has plans to acquire HCSC’s (Health Care Service Corporation) subsidiary TMG Health. The amount for acquisition of TMG Health is not yet disclosed by the company.
Tech giant Cognizant to acquire TMG Health
In a statement released by the company, it said that the deal is likely to close in the 3rd quarter of 2017. This acquisition of TMG Health will result in strengthening of Cognizant’s BPaaS (business process-as-a-service) offering for the government and also for public health programme markets.
TMG Health
TMG Health provides business process services to the managed Medicaid markets and Medicare advantage in the United States. It supports around 32 client plans and even more than 4.3 million members.
So once the deal will be closed, TMG Health’s healthcare business and also the technology professionals will go to become the employees of tech giant Cognizant.
But TMG Health, having offices in Pennsylvania and Texas, will still continue to provide the information technology, business process and also other related services to HCSC’s subsidiaries.
What Susan Rawlings-Molina, CEO of TMG Health said?
Susan Rawlings-Molina, president and CEO of TMG Health said, ‘Cognizant and TMG Health share similar priorities and values when it comes to helping clients deliver superior member-centric care, enable efficient claims processing’.
Molina further said, ‘Government business lines are expanding, and more payers are entering the market. There is a growing opportunity for our teams to work together to help clients succeed in regulated, cost- and compliance-driven markets’.
What Kaushik Bhaumik, executive vice president of Cognizant said?
Kaushik Bhaumik, executive vice president and also global head of healthcare at Cognizant said, ‘Cognizant’s TriZetto Facets and QNXT healthcare claims and administration software processes more than 30% of the US’ managed Medicare lives and over 60% of the nation’s managed Medicaid lives’.
Date: June 15, 2017