Industry: Healthcare / Providers
Transaction: Sale to Strategic Buyer


CNIC Health Solutions, Inc. ("CNIC"), Colorado's largest independent Third Party Administrator (TPA), offers an integrated PPO product to self-funded employers. CNIC provides claims administration, customer service, enrollment/billing and coordination with re-insurance, pharmacy benefit managers and provider networks.

GMB was retained by Mountain Medical Affiliates, Inc. ("MMA") to assist in selling its majority (52.06%) ownership interest in CNIC. MMA sold its majority interest in CNIC in order to provide liquidity to its physician owners as part of its sale of a 100% interest in MMA. MMA is one of the country's oldest Preferred Provider Organizations (PPO) serving Colorado.

GMB conducted a competitive auction process resulting in the selection of Rocky Mountain Health Plans ("RMHP") as the buyer. RMHP, a regional provider of HMO and PPO health plans, previously was a minority shareholder in MMA. The seller was comfortable with RMHP's commitment to maintain CNIC's local identity and support locally administered healthcare.

During the course of the transaction, GMB delicately balanced MMA's interests as majority shareholder with those of CNIC's minority shareholders. GMB effectively communicated with all shareholders involved and structured a creative solution in the purchase agreement to ensure the minority shareholders' interests were met.

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