Health insurer has a healthy week

Investors with shares in Tampa-based WellCare Health Plans had a stellar week: Shares of the managed care health insurance firm increased 23.6% from July 6 to July 13, from $52.83 a share to $65.35 a share.

The spike stems mostly from a Goldman Sachs report that predicts more consolidation in the managed care industry after the $4.46 billion WellPoint-Amerigroup merger. In that acquisition, Indianapolis-based WellPoint, one of the largest health insurers in the country, bought Virginia Beach-based Amerigroup. Like WellCare, Amerigroup targets government, Medicaid and Medicare insurance programs.

The Goldman Sachs report, according to the Wall Street Journal, says deals like this, where large companies buy smaller ones, could be the next wave of consolidations in the health insurance industry. Goldman pegged WellCare's chances of being acquired at 30% to 50%.