Aetna to Spend $500M on Technology Company

HARTFORD, Conn. (AP) – Insurer Aetna says it will spend about
$500 million to buy health information technology company Medicity,
which develops systems that allow doctors and hospitals to
coordinate care and share information.

The Hartford, Conn., managed care company says the deal will
speed up its growth in health information technology and exchanges
and will be neutral to next year’s financial results.

Aetna is the third largest commercial health insurer based on
enrollment. Health insurance is its main product, but Aetna also
sells dental, group life and disability coverage.

Medicity is based in Salt Lake City, and its health information
exchange technology reaches more than 760 hospitals and 125,000
doctors.