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IU Health agrees to sell occupational health clinics

June 7, 2013

Indiana University Health has agreed to sell its eight occupational health clinics to a California-based chain that specializes in workers' compensation cases.

US HealthWorks Medical Group, which already operates nearly 200 clinics in 17 states, agreed in May to acquire the eight clinics from IU Health, the largest hospital system in Indiana. The deal is expected to close before July. Neither entity disclosed the purchase price.

US HealthWorks has offered jobs to 126 of the clinics' 149 workers. IU Health, which will maintain a role in serving clinic patients, has offered positions to 20 of those not hired by US HealthWorks and is working to place the remaining workers.

US HealthWorks has been expanding rapidly even as the number of workers' comp cases  trends down nationally.

"By acquiring and consolidating similar practices, we can bring our efficiencies and core competencies to a national network," said Greg Marotta, senior vice president of national operations at US HealthWorks.

IU Health officials described the deal as a strategic move that could give it access to new customers while helping it focus on other services for employers, such as on-site clinics and health plans.

"We determined it made more sense for us to partner with someone who has the scale to be able to operate more cost effectively and to be able to bring in more customers, more clients, because of their reach," said Ron Stiver, IU Health's senior vice president of engagement and public affairs.

Both Stiver and Marotta said they are committed to having their clinicians collaborate, and are working out an agreement for how to do that. US HealthWorks will now employ the physicians that worked in the clinics, but IU Health specialists will still be involved in patient cases when they're needed.

US HealthWorks operates occupational health clinics in Elkhart, Goshen, Muncie and Warsaw. At some of its clinics, US HealthWorks also offers urgent care, but Marotta said it has no plans to do that at the eight IU Health clinics.

Asked if US HealthWorks was looking to add even more locations in Indiana, he said the company is always looking to expand.

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