Cognizant to acquire TMG Health to enhance digital solutions for healthcare providers
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Nasdaq-listed IT services major Cognizant said it will acquire Health Care Service Corporation's (HCSC) subsidiary TMG Health for an undisclosed amount.

The deal is expected to close in the third quarter of 2017, it said in a statement.

The acquisition will strengthen Cognizant's business process-as-a-service (BPaaS) offering for the government and public health programme markets, it said.

TMG Health provides business process services to the Medicare advantage and managed Medicaid markets in the US, supporting 32 client plans and more than 4.3 million members.

Once the deal is closed, TMG Health's healthcare business and technology professionals will become employees of Cognizant.

However, TMG Health, which has offices in Pennsylvania and Texas, will continue to provide information technology, business process and other services to HCSC's subsidiaries.

The combination of TMG Health’ capabilities and Cognizant's digital systems and technology practices will strengthen Cognizant's BPaaS solution which helps insurers manage government lines of business, the firm said.

Building on Cognizant's 2014 acquisition of healthcare technology provider TriZetto, the addition of TMG Health will extend its digital solutions for healthcare providers.

"Cognizant and TMG Health share similar priorities and values when it comes to helping clients deliver superior member-centric care, enable efficient claims processing," said Susan Rawlings Molina, president and CEO of TMG Health.

"Government business lines are expanding, and more payers are entering the market. There is a growing opportunity for our teams to work together to help clients succeed in regulated, cost- and compliance-driven markets", Molina said.

"Cognizant's TriZetto Facets and QNXT healthcare claims and administration software processes more than 30% of the US’ managed Medicare lives and over 60% of the nation's managed Medicaid lives," said Kaushik Bhaumik, executive vice president and global head of healthcare at Cognizant.

Cognizant has been on an acquisition spree. It has acquired 16 firms in six years and eight of these deals happened in 2014 and 2016.

In March 2017, Cognizant acquired Osaka, Japan-based Brilliant Service Co. Ltd which specialises in digital strategy, product design and engineering, Internet of Things (IoT) and enterprise mobility.

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