FLORHAM PARK, N.J., May 2, 2011 /PRNewswire/ — Managed Health Care Associates, Inc. (MHA), a leading health care service company focused on alternate site providers, is pleased to announce the acquisition of Tidewater Group Purchasing from Omnicare, Inc. (NYSE: OCR). Financial terms were not disclosed.

This is MHA’s second major acquisition of a GPO servicing Long Term Care facilities, and follows the acquisition of Navigator Group Purchasing, Inc. in late December of last year. Both companies have historically been industry leaders in this market segment and are now combining to become one of the largest and fastest growing companies servicing Long Term Care facilities today. The combined purchasing volume and industry expertise of Navigator and Tidewater Group Purchasing will create increased purchasing power and provide for better pricing for its combined members. It will also serve as a tremendous platform for future growth in this industry.

MHA CEO Doug Present commented, “The acquisition of Tidewater Group Purchasing is a huge step forward towards achieving our goals in this class of trade. We have clearly stated our intentions to become the largest GPO servicing Long Term Care facilities, with a plan to achieve this through both organic growth and acquisitions. We also intend to compete for this market by offering our members the best contract pricing, exceptional customer service, superior analytic tools, and complete pricing transparency. Tidewater has been a market leader for many years and this acquisition clearly fits with our strategy for this industry. We are excited about bringing Tidewater’s customers and employees into our company as part of our Navigator subsidiary.”

Timothy J. Stefan, current Navigator GPO President and former Tidewater Group Purchasing President added, “Given my prior history with Tidewater, I am truly looking forward to the opportunity to bring together two outstanding GPOs committed to creating member value. The combined leverage of over 1 million beds that Navigator and Tidewater represent will produce savings and value added services second to none in this healthcare space.”

“The divestiture of our group purchasing organization is consistent with our strategy to focus attention and reallocate resources to those areas of our business that align most closely with our core strengths and growth objectives,” commented John Figueroa, Omnicare’s CEO. “We are pleased to have found in MHA an organization that is dedicated to providing the same exemplary level of service to its members as does Tidewater and is committed to building upon its leadership position in this business segment, which represents a beneficial opportunity for all Tidewater customers.”

About MHA

Managed Health Care Associates, Inc. (MHA) is a leading health care service company that offers a growing portfolio of services and solutions to support the diverse and complex needs of the alternate site health care provider. MHA provides expertise in Group Purchasing, Managed Care and Payer Contracting, Reimbursement Management, Specialty Pharmacy Solutions, Pharmaceutical Data Analytics, Clinical Pharmacy Software and Legislative Advocacy. Through the delivery of innovative and targeted health care services and solutions, MHA helps members increase operational efficiency, maximize business growth and provide optimum care for patients. For more information, visit www.mhainc.com.

About Navigator

Navigator Group Purchasing, Inc., a Managed Health Care Associates, Inc. (MHA) company has experienced leadership in healthcare and hospitality purchasing services, delivering savings and cash flow improvement to its members. A focused portfolio of products, innovative services and strong relationships with members, vendors and manufacturers differentiates Navigator from its competition. Carefully assembled discounted contracts with key vendors and manufacturers produces committed programs to members for improved savings and increased customer satisfaction. For more information, visit www.navigatorgpo.com.

About Omnicare, Inc.

Omnicare, Inc., a Fortune 500 company based in Covington, Kentucky, is a leading provider of pharmaceutical care for the elderly. Omnicare serves residents in long-term care facilities, chronic care and other settings comprising approximately 1.4 million beds in 47 states, the District of Columbia and Canada. Omnicare is the largest U.S. provider of professional pharmacy, related consulting and data management services for skilled nursing, assisted living and other institutional healthcare providers as well as for hospice patients in homecare and other settings. Omnicare’s pharmacy services also include specialty pharmacy operations and a wide range of support services for specialty pharmaceuticals. For more information, visit www.omnicare.com.

For More Information Contact:

MHA:
Angela Elsier
800-642-3020 X2870
aelsier@mhainc.com

Omnicare:
Patrick C. Lee
859-392-3444
patrick.lee@omnicare.com

SOURCE Managed Health Care Associates, Inc.