Amerinet Central Finalizes Acquisition of AllHealth Assets

Amerinet Central announces that they have finalized the definitive agreement to acquire the group purchasing and insurance businesses of the AllHealth organization that will be operated under a new company, AllHealth Amerinet, owned by Amerinet Central. The agreement, originally announced on March 10, became effective March 24, 2006.

The agreement includes two core AllHealth businesses; group purchasing with more than 960 customers and an insurance business that contracts with more than 85 hospitals and covers 100,000 employees. In 2005, sales from their group purchasing vendor partnerships totaled $724 million.

AllHealth operated as a health care provider-owned shared service alliance serving more than 1,600 facilities within the mid-Atlantic region including long-term care facilities, medical practices, and other health care entities. Stated Victor Samolovitch, president of Amerinet Central, “Amerinet Central welcomes the AllHealth customers into our national network. This transaction will offer those customers access to a national group purchasing portfolio as well as access to Amerinet’s full suite of margin improvement tools, including supply chain management and revenue cycle management services.”

Continued Samolovitch, “Our primary goal is to ensure a smooth transition for AllHealth customers. We have asked all suppliers that have current contracts with AllHealth to maintain pricing and will be working with each of them to extend those contracts through a transition period. Additionally, AllHealth Amerinet members will continue to be able to access AllHealth-owned contracts including those in the food service program.”

AllHealth’s Harrisburg office, along with offices in Philadelphia, Pittsburgh and Washington D.C., will be maintained to support existing membership services. Both group purchasing and insurance and benefits employees have been retained either as full-time employees or as independent contractors. The financial terms of the agreement were not disclosed.

Amerinet is one of the leading group purchasing organizations in the United States. Amerinet’s national network of companies, Amerinet Central, Intermountain Health Care and Vector have set industry standards for nearly two decades. More than 1,900 hospitals and 33,000 non-acute care facilities find costs savings and value added services through Amerinet’s comprehensive contract portfolio. Last year, Amerinet members recorded a record $6.5 billion in purchases under Amerinet-negotiated contracts and realized more than $320 million in savings.