Viewed as a move to strengthen its presence in the Kansas market, Coventry Health Care announced its plan to acquire Preferred Health Systems.

The Wichita, Kan.-based company is a wholly-owned subsidiary of Via Christi Health System Inc. It operates as a commercial health plan serving more than 100,000 commercial group risk members and 20,000 commercial self-funded members.

Financial aspects of the proposed acquisition were not disclosed.

As part of the transaction, Coventry is also entering into a long-term provider and customer relationship with Via Christi Health System and its affiliates, according to the Bethesda, Md.-based company.

Via Christi Health System is the largest provider of healthcare services in Kansas, according to the company, serving Kansas and northeast Oklahoma through 10 medical centers, 12 senior services communities and programs and home-based and outpatient services.

Allen F. Wise

Allen F. Wise, Coventry’s chief executive officer, said in a statement, “PHS has established itself as a strong local-based health plan with an excellent track record of serving employer groups in the Wichita area.”

“This acquisition reaffirms Coventry’s commitment to strengthening its health plan footprint and is consistent with our focus on our seven core businesses,” Wise said. “Upon completion of this transaction, we will serve more than 1 million members in our six state Midwest region.”

The transaction is expected to close in the next 90 days to 120 days subject to closing conditions and regulatory and other customary approvals. Coventry said the transaction is expected to be neutral to earnings in the fist year after closing.