Teleperformance, headquartered in France, will acquire Plymouth Meeting-based Health Advocate, which is hired by businesses to help employees navigate health care, for $690 million, writes Harold Brubaker for The Philadelphia Inquirer.
The European company is banking on the complexities of health insurance and medical care in the United States that are not expected to abate.
“The U.S. health-care system is extraordinarily resistant to major transformation, and the complexity of the system is going to continue,” said Daniel Julien, chairman and chief executive of Teleperformance.
Health Advocate was formed by five veterans of the health care sector nineteen years ago. The goal was to help patients cope with the complications and confusion arising from dealing with health care. Since then, the need has only intensified.
“The U.S. health-care market is so fragmented, so complex, so difficult to navigate that 40% of Americans do not know what their plans cover,” said Julien.
Currently, Health Advocate has 8,400 companies as clients and offers services to almost 27 million of Teleperformance’s employees and families. Last year, it had $48 million in cash profits from $139 million in revenue.
The acquisition will not affect the company’s Plymouth Meeting offices.
Read more about Health Advocate at The Philadelphia Inquirer by clicking here.
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