Health benefits provider WellPoint has entered into an agreement to acquire American Imaging Management, a radiology benefit management and technology company. Health benefits provider WellPoint, Inc. announced that it has entered into an agreement to acquire American Imaging Management (AIM), a radiology benefit management and technology company with health plan clients representing over 20 million consumers.

The acquisition will allow WellPoint and AIM to advance their initiatives to reduce growth in health care expenditures, increase transparency and promote improved quality in health care. AIM will continue to enhance and expand the services they provide to WellPoint as well as their other customers nationwide.

Diagnostic imaging is one of the fastest growing types of health care expenditures in the United States, with a double digit annual growth rate. WellPoint has seen a dramatic reduction in its radiology trend with AIM's technology and expertise. This transaction will enable WellPoint to apply AIM's capabilities to other high tech, high cost categories where technology is driving uncertainty in ordering and increased health care costs. The AIM tools help bring transparency to health care categories where, as with radiology, price and quality vary dramatically within markets.

"By acquiring AIM, we can further manage costs and help improve the quality of radiology services for our members while at the same time support AIM in their development of initiatives to help manage future high cost technology services," said Angela F. Braly, president and chief executive officer of WellPoint. "AIM makes innovative use of technology and creates easy-to-use programs that help ensure consumers receive the quality services they need while eliminating unnecessary testing and costs. As an industry leader in medical management, the acquisition of AIM will allow us to continue to reduce growth in health costs while helping to ensure our members have access to the best possible care."

David S. Harrington, chairman and chief executive officer of AIM, said, "AIM delivers clinical excellence, outstanding service to clients and physicians, and uses technology to create intelligent solutions in health care management. Combining our operations with WellPoint - a company that demonstrates these same values - supports our vision of expanding our technology platform within diagnostic imaging and into other health services."

Radiology management is increasingly important in helping to ensure that consumers receive the quality tests they need while creating greater efficiency in the delivery of health care. While advances in diagnostic imaging have vastly improved clinical care, increased ordering complexity, safety, redundant and duplicative testing and confusion on the value at the performing sites have created a growing urgency to manage this $100bn plus segment of health services.

"AIM's technology helps physicians and their patients choose the highest quality, most cost effective sites for diagnostic imaging services," said Dr. Sam Nussbaum, executive vice president and chief medical officer for WellPoint. "Their proven technologies and capabilities can be expanded to improve health care quality and help optimize costs in other key areas such as orthopedics, cardiology, lab services and specialty pharmacy."

AIM pioneered the integration of technology and clinical content for radiology management through the introduction of web-based prior authorization in 2002. This platform allows ordering physicians to directly submit information and receive real-time evaluation against widely accepted clinical guidelines through an easy-to-use interface.

AIM's web capabilities also help to improve quality and efficiency by facilitating information transfer between ordering physicians and rendering facilities to deliver a complete and correct understanding of the clinical order, helping to reduce potential waste and administrative burden caused by poor communication. AIM also introduced the first set of web-enabled tools to install cost and quality transparency into the selection of the best value in diagnostic imaging facilities.

Under the terms of the agreement, WellPoint will pay approximately $300m in cash to acquire Imaging Management Holdings, the holding company parent of AIM, which is IMH's sole business. The acquisition is expected to close in the third quarter of 2007 subject to standard closing conditions and customary approvals required under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction will not have an impact on WellPoint's current earnings per share guidance for 2007.


Source: WellPoint, Inc./PRNewswire

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