Arthur J. Gallagher & Co. Acquires BluePeak Advisors to Expand Medicare Management Capabilities

On July 11, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that risk management and consulting services firm Arthur J. Gallagher & Co. (Gallagher) announced the acquisition of BluePeak Advisors (BluePeak). No financial terms of the transaction were disclosed.

BluePeak, established in 2010 and headquartered in Texas, USA, is a national healthcare consulting firm. With operations across the United States, the company was initially founded by government healthcare professionals and is dedicated to the implementation and regulation of Medicare Part C and D plans, Medicaid programs, and Pharmacy Benefit Management (PBM).

U.S. Medicare comprises four parts: Hospital Insurance (Part A), Supplementary Medical Insurance (Part B), Medicare Advantage (Part C), and Prescription Drug Coverage (Part D). Part C offers private health insurance plans to enrolled beneficiaries, while Part D is a social security measure through which the U.S. government provides prescription drug subsidies to enrollees. Medicare not only reduces patients’ out-of-pocket costs for prescription medications but also helps them access better medical care.

BluePeak leverages its operational efficiency and expertise in developing PBM-related products to help pharmacies, pharmaceutical companies, and other healthcare organizations expand their businesses and launch new products, thereby achieving success in the ever-evolving healthcare market.

BluePeak primarily provides services in pharmacy benefit management (PBM) and health plan operations, Medicare compliance consulting, star ratings and improvement strategies, pharmaceutical manufacturer marketing and reimbursement payment strategy development, clinical planning, and data analytics. The company boasts an experienced team of consultants comprising healthcare management professionals, clinicians, and former staff from the Centers for Medicare & Medicaid Services (CMS). Following the acquisition, under the guidance of Seth Friedman, Head of Health Plan Solutions at Gallagher, Babette Edgar and Sherry Pound, Senior Vice Presidents of Regions at BluePeak, will continue to oversee business operations in their respective regions.

Gallagher, founded in 1927 and headquartered in Illinois, USA, is a global insurance brokerage and risk management services company dedicated to providing clients with exceptional risk management solutions. The company maintains offices in 35 countries and serves clients in over 150 countries through its network of agent-brokers and consulting partners. Previously, Gallagher has acquired multiple healthcare advisory firms and insurance companies, such as Cairnstone Financial, Stackhouse Poland, and Complete Benefit Alliance, to continuously expand its team.

Gallagher is a global leader in risk management and consulting services. In addition to health insurance consulting and the design of health benefit programs, the company offers comprehensive risk management services, including claims information management as well as risk management consulting and assessments, helping businesses and institutions reduce risk costs.

J. Patrick Gallagher, President and Chief Executive Officer of Gallagher, stated, “BluePeak holds a unique position in the market by leveraging its expertise in Medicare risk management to help clients develop and expand their businesses. We welcome Babette, Sherry, and their colleagues to our growing team.”

Seth Friedman added, “BluePeak and Gallagher have previously collaborated to address client challenges. BluePeak’s services in the U.S. Medicare plan advisory space should complement Gallagher’s existing healthcare consulting business, giving rise to leading products that comply with government healthcare industry regulations.”

(Compiled by Xu Xiaoxue)