NYAPRS Note: Beacon and ValueOptions, both operating in NY as behavioral health organizations, are set to merge this year barring any complications with regulatory review later this fall. This merger is another helpful sign of integration that could optimize the management of behavioral health services throughout the region and, ultimately, the country. However, when looking at the merger of two companies like this, it’s important to realize the different strengths that each may bring to the table. The merger may simply be wise financially, but the organizations are also trying to maximize brand value, geographical reach, risk distribution, and client reach and satisfaction. If both maintain some of the more innovative approaches they have become known for as they come together, the partnership could lead to major contributions to the field.
Beacon Health Strategies and ValueOptions to Merge
Public Statement from Beacon Health Strategies; 5/27/2014
Beacon Health Strategies has entered into a definitive agreement to merge with ValueOptions, in a transaction designed to create the premier managed behavioral healthcare company in the United States. Financial terms of the private transaction were not disclosed.
The transaction brings together two best-in-class mission driven companies that share similar visions. “Our combined company will continue our unwavering efforts to improve access to high quality, appropriate behavioral healthcare services to individuals living with mental health or substance use conditions. We will strive to improve the health and social wellbeing of individuals through recovery-focused programs and effective provider partnerships,” said Tim Murphy, Beacon’s CEO, who will now serve as the CEO for the combined companies.
“ValueOptions firmly believes combining with Beacon offers our clients, providers and members the industry’s best behavioral healthcare management partner. Both entities know each other well. Both are financially strong. Both are recognized leaders. This move just makes sense from the perspective of providing a broader range of services to all of the different populations we now serve individually,” said Heyward Donigan, President and Chief Executive Officer of ValueOptions. Upon completion of the transaction, Ms. Donigan will serve as an advisor to Mr. Murphy.
The transaction will combine two industry leaders in the behavioral health management services sector. “We are well positioned to address emerging needs of clients and members during the era of the Affordable Care Act and Federal mental health parity law,” said Tim Murphy. “Our new combined operation will immediately distinguish itself by offering our clients superior clinical management, a strong Employee Assistance Program (EAP) and insightful analytics to improve the delivery of care. As a company exclusively focused on behavioral health management, we have the resources to invest and tailor our programs to each client’s needs,” Murphy added.
The combined business will serve 43 million people across all 50 states and the United Kingdom. It will have approximately 4,000 employees and be headquartered in Boston, MA.
The merger is subject to regulatory review, which is expected to be completed in the fall of 2014. In the meantime, the two companies will continue to operate as independent organizations.