Value Health Sells Subsidiary Lewin-VHI Amid Alleged Conflict of Interest Problems

Strategic Insights -

Value Health, Inc. has announced the sale of its subsidiary Lewin-VHI, a renowned healthcare policy, research, and management consulting firm, following a strategic review that concluded the sale reflects the conclusion of a mutually agreed upon decision. The sale comes amidst alleged conflict of interest problems with Value Health's core businesses, which have hindered Lewin-VHI's growth and potential.

The Lewin-VHI firm, originally known as Lewin ICF when acquired by Value Health in 1992, has been a leader in healthcare policy, research, and management consulting, working with private sector organizations and government agencies. Their analyses on the costs of the Clinton Health Security Act and competing plans in 1994 were widely cited. Robert E. Patricelli, Value Health's chairman and CEO, cited the sale as a necessary step due to conflict of interest concerns and the expansion of Value Health's business, which has begun to limit opportunities for Lewin-VHI.

Key Takeaways:

  • Value Health, Inc. has sold its subsidiary Lewin-VHI, a healthcare policy, research, and management consulting firm, after a strategic review concluded the sale was in the best interest of both companies.
  • The sale was prompted by alleged conflict of interest problems with Value Health's core businesses, which have hindered Lewin-VHI's growth and potential.
  • Lewin-VHI has expanded its services to help organizations in the healthcare industry succeed in a changing environment, including strategic planning, financial analysis, and outcomes research.
  • The company has 145 employees in its offices in Washington, D.C., San Francisco, and Cleveland metropolitan areas.
  • Value Health, Inc. is a leading provider of specialty managed care benefit programs and healthcare information services, serving more than 78 million people and 130 of the nation's largest corporations.

Statistics:

  • 145 employees work at Lewin-VHI across its locations in Washington, D.C., San Francisco, and Cleveland.
  • Lewin-VHI has been involved in analyzing the costs of the Clinton Health Security Act and competing plans in 1994.
  • Value Health's healthcare information services include clinically based precertification and claims review, provider profiling, and claims cost analysis.
  • More than 78 million people are served by Value Health's services.
  • Value Health provides services to 130 of the nation's 250 largest corporations.

Sources:

  • PRNewswire, July 31, 1995
  • Value Health, Inc. press release, dated July 31, 1995