Alignment Healthcare, an emerging health care services company based in Orange County, Calif., has purchased Citizens Choice Health Plan, a California Medicare Advantage plan that has been in business since 2006.

Terms of the acquisition were not disclosed. The purchase has been approved by the California Department of Managed Health Care (DMHC). Citizens Choice currently provides benefits to thousands of Medicare beneficiaries in seven California counties including one of the largest Medicare eligible counties with over 1 million beneficiaries whom will have access to a new generation of care delivery. Based in Orange, Citizens Choice Health Plan is a Medicare Advantage HMO Prescription Drug Plan that contracts with the Federal Government to provide services to all beneficiaries eligible for Medicare Part A and Part B.

Alignment Healthcare is building the nation’s leading clinically integrated population health management company, say executives. In April of this year, Alignment Healthcare announced that it had received a capital commitment of $125 million from General Atlantic, a global growth equity firm, to expand its population health model across the country.

“This was a strategic acquisition for Alignment based on our goal to be the leading population health management company in the country,” said John Kao, founder and CEO of Alignment. “Citizens Choice has a rich history of providing exceptional benefits and a strong network of physician providers to its diverse Medicare enrollees, and we look forward to expanding this platform and introducing a new generation of coordinated health delivery of care. In California, Citizens’ Choice will give Alignment a platform that will allow us to provide population health management capabilities to physicians, physician groups, IPAs and hospital systems. Our goals are to provide the member with the best possible health care experience with competitive benefits and to support the providers, IPAs and medical groups and hospitals like no other health plan in California. In markets outside of California, Alignment partners with large hospital systems and medical groups to help them migrate from fee for service to value based healthcare. We also will partner with health plans through payer-provider collaboration initiatives as we are willing to take risk on Medicare Advantage business.”

“As hospitals, doctors and health plans experience unsustainable downward pressure on reimbursements, Alignment Healthcare believes the only solution is to eliminate waste by aligning financial incentives and coordinating care. The company’s technology and integrated care coordination models will improve quality outcomes, while lowering cost and eliminating waste in the care system. This is achieved by focusing on the highest-cost, most complex patient groups in Medicare Advantage, Medicaid, and commercial populations,” added Kao.