Cognizant Technology Solutions, the US-based technology company with large offshore presence in India, will buy Health Care Service Corporation’s subsidiary TMG Health.
As part of the expansion of Cognizant’s strategic relationship with HCSC, TMG Health will enter into a new, expanded multi-year service agreement to continue providing IT, business process and other services to HCSC’s various operating units and subsidiaries.
TMG Health provides business process services to Medicare Advantage, Medicare Part D and managed Medicaid markets in the US, supporting 32 client plans and over 4.3 million members in all 50 States.
Its healthcare business and technology professionals will become employees of Cognizant upon the close of the transaction, says a Cognizant press release.
TMG Health has over 1,900 associates, says its website.
Building on Cognizant’s 2014 acquisition of healthcare technology provider TriZetto, the addition of TMG Health will extend Cognizant’s market leadership and expand the breadth of its digital transformation solutions for healthcare payers and providers, the release said.
The transaction is expected to close in the third quarter of 2017. Financial details were not disclosed.
The combination of capabilities from TMG Health, Cognizant’s digital operations, and digital systems and technology practices will strengthen Cognizant’s scalable business process-as-a-service solution for the government and public health programme markets.
Kaushik Bhaumik, Executive Vice-President and global head of healthcare at Cognizant, in the release said, “Cognizant’s TriZetto Facets and QNXT healthcare claims and administration software and systems process over 30 per cent of the US managed Medicare lives and over 60 per cent of the nation’s managed Medicaid lives.