Mercer announced it has acquired Alicia Smith & Associates, a Washington, D.C.-based Medicaid policy consulting firm.
Mercer, a human resources consulting, outsourcing and investment firm, bought the firm to strengthen its government human-services consulting business, officials say. This is especially important in a period of cost and compliance challenges related to Medicaid.
Terms of the agreement were not disclosed.
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"Mercer's acquisition of Alicia Smith & Associates will reinforce and expand our successful government health services business, while helping us address some of the most vexing challenges that government programs face today," says David Rahill, president of Mercer's health and benefits business.
As both the states and the federal government increase their reliance on managed care and insurance exchanges, there is pressure to contain costs while increasing access and improving quality. With January 1, 2014 drawing closer, these factors put enormous pressure on states, many of whom have reduced their own staffing levels to help cope with revenue shortfalls, the companies say.
"Our national reputation with state governments, and decades of experience in all aspects of health care delivery and the Medicaid program, means we can advise clients on program design options and service delivery strategies that help them maximize their funding opportunities and successfully deal with the new realities in health care delivery," says Alicia Smith, founder of the firm.
As part of Mercer, the services of Alicia Smith & Associates will be delivered through Mercer Government Human Services Consulting, which aims to assist government-sponsored programs in becoming more efficient purchasers of health and welfare services.
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