-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LU1heXuK158Hlpl8+UIfKPpa5QsyetWL2UWcRqpnoSzu5cgeFv+8wWypjFqaprkF si1Dq12ZLnkYBHb2DEYqsw== 0000731766-96-000003.txt : 19960216 0000731766-96-000003.hdr.sgml : 19960216 ACCESSION NUMBER: 0000731766-96-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950803 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960215 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED HEALTHCARE CORP CENTRAL INDEX KEY: 0000731766 STANDARD INDUSTRIAL CLASSIFICATION: HOSPITAL & MEDICAL SERVICE PLANS [6324] IRS NUMBER: 411321939 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10864 FILM NUMBER: 96521093 BUSINESS ADDRESS: STREET 1: 300 OPUS CENTER STREET 2: 9900 BREN ROAD EAST CITY: MINNETONKA STATE: MN ZIP: 55343 BUSINESS PHONE: 6129361300 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 1, 1996 UNITED HEALTHCARE CORPORATION (Exact name of registrant as specified in charter) MINNESOTA (State or other jurisdiction of incorporation) 0-13253 41-1321939 (Commission File Number) (IRS Employer Identification No.) 300 Opus Center, 9900 Bren Road East, Minnetonka, MN 55343 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (612) 936-1300 Item 5. Other Events On February 1, 1996, United HealthCare Corporation ("United"), announced that it entered into an Agreement and Plan of Merger on February 1, 1996 with HealthWise of America, Inc. ("HealthWise") to acquire HealthWise (the "Agreement"). Upon the terms and subject to the conditions set forth in the Agreement, a wholly owned subsidiary of United will merge with and into HealthWise (the "Merger"). As a result of the Merger, the separate corporate existence of the subsidiary will cease and HealthWise will continue as the surviving corporation of the Merger and a wholly owned subsidiary of United. HealthWise, which is based in Nashville, Tennessee, owns and operates health maintenance organizations in Maryland, Kentucky, Tennessee and Arkansas with current enrollment of approximately 154,000 members. In addition, HealthWise has recently received an HMO license in Virginia and is expanding its Maryland operations into Washington, D.C. Under the terms of the Agreement, United will issue up to approximately 4.6 million shares of common stock in exchange for all outstanding equity ownership and stock options in HealthWise, with each outstanding share of common stock of HealthWise being converted into 0.6475 of a share of common stock of United. The agreement was negotiated at arms-length. The closing is subject to customary closing conditions, including receipt of regulatory approvals and approval by HealthWise shareholders. The acquisition is anticipated to close during United's 1996 second quarter and is expected to be treated as a pooling of interests for accounting and financial reporting purposes. United and HealthWise issued a joint press release on February 1, 1996, a copy of which is attached hereto as Exhibit 99. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (c) Exhibits Exhibit 99--United HealthCare Corporation and HealthWise of America, Inc. press release, dated February 1, 1996. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. UNITED HEALTHCARE CORPORATION (United) By /s/ David P. Koppe David P. Koppe Chief Financial Officer Date: February 15, 1996 EXHIBIT INDEX Exhibit Number Description Page No. 99 United HealthCare Corporation and HealthWise of America,Inc.press release dated February 1, 1996. 5 EX-99 2 EXHIBIT 99 United HealthCare Corporation HealthWise of America Contact: Bernard McDonagh Contact: Ken Melkus Vice President, Investor Relations Chairman and Chief Executive Officer (612) 936-7214 (615) 385-4666 Susan Busch Harold D. Simpson Director, Communications Vice President and Chief Financial (612)992-5132 Officer (615) 385-4666 UNITED HEALTHCARE SIGNS DEFINITIVE AGREEMENT TO ACQUIRE HEALTHWISE OF AMERICA, INC. MINNEAPOLIS, MN and NASHVILLE, TN (February 1, 1996) -- United HealthCare Corporation (NYSE: UNH) and HealthWise of America, Inc. (NASDAQ: HOAM) said today they have signed a definitive agreement under which United HealthCare will acquire HealthWise of America, Inc. HealthWise, which is based in Nashville, Tennessee, owns and operates health maintenance organizations in Maryland, Kentucky, Tennessee and Arkansas with current enrollment of approximately 154,000 members. In addition, HealthWise has recently received an HMO license in Virginia and is expanding its Maryland operations into Washington, D.C. Completion of the acquisition, which is subject to the customary closing conditions, including receipt of regulatory approvals and approval by HealthWise shareholders, is expected during the second quarter. Shareholders representing approximately 20 percent of the outstanding shares have agreed to vote in favor of the transaction. (more) Page 2 of 3 Terms of the agreement call for United HealthCare to issue approximately 4.6 million shares of common stock in exchange for all outstanding equity ownership and stock options in HealthWise of America, with each share of common stock of HealthWise of America being converted into 0.6475 of a share of common stock of United HealthCare. United expects the transaction to be non-dilutive to earnings. United HealthCare will file a registration statement with the Securities and Exchange Commission and will apply to The New York Stock Exchange for listing of the shares of its common stock to be issued in the transaction. The transaction will be accounted for as a pooling-of-interests. A one-time non- operating charge associated with the professional fees and other direct merger costs is expected to be reported in the quarter ending June 30, 1996. William W. McGuire, M.D., CEO of United HealthCare, said that the two companies saw significant benefits emerging from the combination. These included strengthening of capabilities in high growth markets and expansion of products available to consumers. In particular, the acquisition allows for: UHC to gain access to established and strong operational managed care infrastructures in markets that are still relatively under-penetrated and where UHC has a significant presence through its MetraHealth clients. These include Maryland, the District of Columbia, Virginia and Kentucky. UHC currently serves over 400,000 people in these markets. The combination of overlap health plans in the largely unpenetrated and high growth markets of Tennessee and Arkansas where UHC has experienced strong growth. In these areas, UHC s health plans and other products serve nearly 280,000 people. The opportunity to rapidly expand services to Medicare beneficiaries through the existing Medicare risk program of HealthWise in Maryland, a state with nearly 580,000 eligibles with less than 2% currently enrolled in HMOs. Page 3 of 3 McGuire added that the combination fit well into United s strategy of having strong local management and operating infrastructure in place to serve people with multiple product needs particularly in areas of high future growth potential. HealthWise of America Chief Executive Officer, Ken Melkus said, Through the combination of our efforts with United HealthCare we are gaining access to the products, technology and financial strength of the premier health care services firm in the United States. United HealthCare is committed, as are we, to providing high quality, cost effective health care services. By combining our efforts with those of United, we will be able to preserve these values as we undergo significant growth in our markets. We believe this transaction to be attractive to our shareholders, employees, clients and the many health care providers who have joined with us in offering quality health care at reasonable costs. United HealthCare now serves over 40 million individuals through its various products, including managed care and indemnity programs, as well as managed mental health and substance abuse services; utilization management; workers compensation and disability management services; specialized provider networks; third-party administration (TPA) services; employee assistance services; Medicare and managed care programs for the aged; managed Medicaid services; managed pharmacy; health care evaluation services; information systems; and administrative services. ### -----END PRIVACY-ENHANCED MESSAGE-----