Lake Forest-based Beech Street Corp. said Wednesday that it’s being bought for $165 million by Concentra Operating Corp. of Addison, Texas.
Beech Street, a preferred provider organization health plan operator, had 12-month revenue of about $70 million through June.
Concentra expects the deal to be completed later this year, subject to regulatory approval.
“Not only does Beech Street offer us new business opportunities within the group health PPO market, Beech Street’s other services will be highly complementary to our offerings in the group health and workers’ compensation markets,” said Daniel Thomas, Concentra’s chief executive, in a release.
Beech Street’s management team, including Chief Executive Bill Hale, is expected to stay on after the acquisition. Concentra said that it plans to operate Beech Street as an independent unit.
Beech Street has some 480 workers. It has a network of more than 400,000 primary care physicians, 52,000 other healthcare providers and more than 3,800 hospitals.
The company, which was founded in 1951, operates preferred provider networks and contracts with large employers, unions, city governments and others.
In an earlier Business Journal interview, Hale said that Beech Street grew in a slow, steady fashion.
“We don’t hit big home runs,” he said. “We hit lots and lots of singles.”
Concentra is a cost containment and case management company. Its customers are in the group healthcare, occupational healthcare and automobile insurance markets.
The company has about 136,000 employer customers and 3,700 insurance company customers.
