Cognizant to acquire TMG Health

Cognizant Technology Solutions (CTS) recently announced it has entered into a definitive agreement to purchase Health Care Service Corporation's (HCSC's) subsidiary TMG Health. The transaction is expected to close in the third quarter of 2017, subject to regulatory nod. The financial details were not disclosed.

TMG Health's business and technology professionals, numbering around 1,800, will become employees of CTS upon the close of the transaction. TMG Health, an HCSC subsidiary since 2008 with offices in Pennsylvania and Texas, is a provider of business process services to the 'Medicare Advantage', 'Medicare Part D' and 'Managed Medicaid' markets in the US, supporting 32 client plans and more than 4.3 million members in all 50 states.

"The combination of capabilities from TMG Health, CTS's digital operations, and digital systems and technology practices will further strengthen CTS's scalable business processas-a-service (BPaaS) solution for the government and public health programme markets," the company said in a statement.

Susan Rawlings Molina, president and chief executive, TMG Health, said, "We believe there is a growing opportunity for our experienced teams to work together to help current and future clients succeed in highly regulated, costand compliance-driven markets."

Kaushik Bhaumik, executive VP and global head of healthcare, CTS, said, "The addition of TMG Health's capabilities and experts to our healthcare portfolio will enable all of our payer clients to embrace new digital opportunities with their growing government business lines, be more competitive and respond quickly to changes in these critical markets with increased efficiency from member enrolment through care management, under a predictable, cost-effective BPaaS model."