Fallon Health of Worcester has acquired a third-party administrator of self-insurance Group Insurance Service Center Inc. (GISC), expanding its reach into the market.
Based in Pembroke, privately held GISC manages health care benefits for about 17,000 members in Massachusetts and elsewhere, including New Hampshire, New York, Pennsylvania, Rhode Island and Vermont. The purchase was made through its subsidiary, UltraBenefits Inc., Fallon said in a statement Thursday.
The nonprofit Fallon said that, much like UltraBenefits, GISC is a third-party administrator — or TPA — that specializes in the administration of self-funded employee health, dental and short-term disability plans.
Fallon said the purchase is an opportunity to grow its base of employers looking to take advantage of the TPA option. With the additional 17,000 accounts, Fallon strengthens UltraBenefits’ position in the marketplace, according to the company, expanding from 42,000 to 59,000 members.
“This is an opportunity for Fallon to demonstrate its continued commitment to serving the health care needs of employers who are looking for a broader range of cost-effective solutions,” Patrick Hughes, president and CEO of Fallon Health, said in the statement. “It’s also an opportunity that’s aligned with our overall strategy to achieve profitable growth.”
James C. Bushey, president of UltraBenefits, will be appointed president and CEO of GISC.
