Spectrum Health, a leading provider of spectrum-enhanced treatments, announced plans to close its doors on June 1.
Spectrum announced plans for a merger with Health Net, the second-largest provider of Spectrum-enhancement treatments in the U.S. to be sold to a company with a history of poor health care.
Spectrum and Health Net did not immediately respond to requests for comment.
Spectrum will continue to operate Spectrum Health Services, which was established in 2016 to provide Spectrum-based products to the community.
Spectrum Health will also continue to provide its services through a subsidiary, Spectrum Health Solutions, that will offer spectrum-based treatments.
Spectrum said it will pay $1.9 billion to acquire Health Net for $9 billion, and will make further acquisitions and divestitures in the future.
Spectrum is expected to make about $50 million to $60 million in cash, depending on the outcome of the deal.
Spectrum Healthcare said it was investing in its workforce to support its mission of creating a healthcare ecosystem that delivers better care, faster access to care, and a more efficient way to treat health care-related conditions.
Spectrum CEO and Chairman Chris Hines said in a statement that Spectrum Health has a strong track record of achieving its objectives.
“The acquisition of Spectrum Health is the culmination of years of focus on improving the quality of care, as well as creating a vibrant, highly-responsive workforce with access to the most advanced spectrum treatments and services,” Hines wrote.
“This merger brings Spectrum Health’s healthcare offerings to a whole new level of care for our customers, and I look forward to building a strong, strong healthcare ecosystem together.”
Spectrum’s stock price has been steadily climbing since the acquisition of Health Net.
Health Net CEO Andrew L. Dickson said Spectrum is focused on providing the most effective, compassionate and safe care to our patients.
Spectrum has more than 500 patients and more than $1 billion in revenue, and has been profitable for nearly a decade.
“Spectrum is an important partner in the Spectrum Health family of companies and we look forward for continued growth in the years ahead,” Dickson wrote in a blog post.
“As a company, we’re very excited about the opportunities we see to offer our patients the best possible care in the most efficient and safest way.
We’re also focused on ensuring Spectrum’s long-term health and well-being.
We look forward working with Spectrum Healthcare and the Spectrum team to continue to deliver the care Spectrum provides to our customers and patients.”
Health Net and Spectrum Health have had an excellent relationship for years, according to a spokesperson for Health Net president and CEO James McGovern.
“We’ve had great conversations over the years,” McGovern said in an email.
“Health Net is pleased to have Spectrum Health join us, and look forward continuing our partnership.”
HealthNet’s CEO, Dr. Daniel Ostroff, said Spectrum Health had a great deal of experience in spectrum-accelerated treatments and said the combination of Spectrum and Spectrum will provide a strong foundation for the future of Spectrum’s business.
“Our patients will get the best and most effective care they can get, and we’ll continue to be the premier provider of the most highly effective spectrum treatments available in the United States,” Ostrof said in the email.
The Spectrum acquisition was first reported by the Wall Street Journal.