Stanford health care risk management firm makes East Coast buyReprints
The Risk Authority Stanford, a Palo Alto, California-based health care risk management consulting firm associated with the Stanford University Medical Network, plans to acquire substantially all the assets of another health care risk management firm, PHT Services Ltd., the organizations said Monday.
Columbia, South Carolina-based PHT Services’ specialties include workers compensation, professional and general liability, and medical stop loss, among others, according to a statement. The boards of directors of both organizations have approved a nonbinding letter of intent.
Terms of the acquisition were not disclosed.
TRA now has 26 employees and PHTS 33, with no layoffs planned, according to the statement.
Following the transaction’s close, TRA Stanford will continue to provide risk management services to the 30 South Carolina hospitals now working with PHTS.
The Risk Authority Stanford, which is the wholly owned subsidiary of Stanford Health Care and Stanford Children’s Health, was created from the risk management department serving the Stanford University Medical Network.
In addition to still providing all risk management services to the institution and its two captive insurers, the firm also provides services to health systems, health plans, medical groups and other health care and non-health care organizations outside of Stanford.
“This acquisition pairs two world-class players in risk management services and sends a loud and clear message that innovation and data-driven techniques are the future of our industry,” Jeff Driver, CEO of TRA and chief risk officer of Stanford Health Care and Stanford Children’s Health, said in the statement.
“TRA’s prowess in professional liability dovetails nicely with PHTS’ deep experience in both liability and workers compensation,” Mr. Driver said.