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Aetna expands into the health technology market with acquisition of Medicity Posted: December 13th, 2010

By Maryalene LaPonsie

Insurer Aetna is purchasing health technology firm Medicity in an acquisition that will allow the health insurance company to expand its health information exchange offerings. The $500 million deal will let Aetna access a network of 760 hospitals, 125,000 physician users and 250,000 end users that currently Medicity's health information exchange (HIE) technology.

Headquartered in Salt Lake City, Utah, Medicity offers a range for services and products that are intended to:

  • Allow the secure exchange of health care information
  • Improve the quality and efficiency of patient care
  • Reduce unnecessary health care costs

"This acquisition will enable Aetna to offer a set of convenient, easy-to-access technology solutions for physicians, hospitals and other health care providers," said Mark T. Bertolini, Aetna CEO and President in a statement. "That, in turn, can help improve the quality and efficiency of patient care."

Once the sale is complete, Medicity will operate as a separate company within Aetna. Its existing leadership structure is intended to stay in place. The company currently offers products and services that cater to local, regional and national markets.