LOS ANGELES - The international law firm of McDermott Will & Emery advised Health Net, Inc. (NYSE:HNT) regarding the July 27 sale of its Florida health plan to Florida Health Plan Holdings II, LLC, for a total consideration of approximately $49 million. Health Net also sold its Florida office facility in Sunrise, Florida to DGE Properties, LLC for $15 million.
McDermott’s legal team was comprised of partners in the Firm’s Miami and Los Angeles offices including Gary Scott Davis, Gregg Fierman, Mark Mihanovic and Doug Mancino. The team has been working closely with Health Net since November 2000, as it was considering its strategic options, including the sale of the company. McDermott’s team worked in conjunction with Curt Westen, Senior Vice President and General Counsel of Health Net, and Michael Jansen and Eric Groen, both of Health Net's Office of the General Counsel.
The sale, which was effective upon the close of business on July 31, will entitle Health Net to $23 million in cash and a secured 6-year note of approximately $26 million bearing 8 percent simple interest for its Florida health plan, Foundation Health.
"McDermott Will & Emery worked with Health Net’s general counsel in all phases of the sale from inception to completion," commented Gary Scott Davis, health law partner. "The negotiation of the sale called upon McDermott’s multidisciplinary health practice and managed care expertise to identify issues, respond with appropriate solutions and proceed with implementing the best options for our client."
Health Net, Inc., formerly known as Foundation Health Systems, Inc., is one of the nation's largest publicly traded managed health care companies. The company's HMO, insured PPO and government contracts subsidiaries provide health benefits to approximately 5.4 million individuals in 15 states through group, individual, Medicare, Medicaid and TRICARE programs.