Beech Street Corp. Merges with MediChoice

Beech Street Corp., one of the largest PPOs in the country, finalized its acquisition of MediChoice, a large PPO in the northeastern United States that primarily serves the New York and New Jersey markets.

The acquisition increases Irvine, Calif.-based Beech Street's networks in the New York and New Jersey market to some 250 hospitals and more than 50,000 providers serving 1 million plan members.

"The expanded Beech Street/MediChoice network is attracting the attention of multi-state employers and payors all over the country," said Marc Allen, Beech Street's vice president of North-Eastern Integration.

The Beech Street/MediChoice deal comes at a time when mergers and acquisitions in the health-care services industry are slowing. In the fourth quarter of 1999, there were 16 percent fewer deals than the previous quarter, according to Irving Levin Associates, a research and health care publishing firm.

In its fourth-quarter 1999 Health Care Merger and Acquisition Report, Levin reports that there were 141 health care mergers and acquisitions announced during October to December 1999.

"M&A activity in the health care services sector has reached its lowest level since the second quarter of 1995 when 139 deals were announced," said Stephen M. Monroe, managing editor at Levin.