Physician staffing company TeamHealth will acquire post-acute care group IPC Healthcare Inc. for $1.6 billion, the companies announced Tuesday.
The acquisition will help Knoxville, Tennessee-based TeamHealth “capitalize on key trends” as the healthcare industry moves toward value-based reimbursements and a focus on post-acute care, wrote TeamHealth President and CEO Mike Snow.
IPC has been in trouble with federal authorities, with a False Claims Act lawsuit last year alleging the company overbilled millions. In 2009 a whistleblower claimed the company pressured its clinicians to “upcode” claims, and last February a federal judge ruled IPC had to face the charges.
IPC provides post-acute services in an estimated 2,000 facilities across 28 states. The new combined company is expected to have a network of 15,000 healthcare professionals across the country.
The all-cash deal is expected to close in the fourth quarter of this year, and is subject to regulatory approval.