A leading Michigan health plan has completed its acquisition of a Fort Wayne-based provider with more than 50,000 members and a history dating back more than 40 years.
Priority Health, which serves more than 1.3 million members, first announced plans to acquire Physicians Health Plan of Northern Indiana, commonly referred to as just PHP, in June. The deal closed Sunday, a Tuesday news release said.
Financial terms of the acquisition were not disclosed, but the organizations have said proceeds from the acquisition will add to the holdings of the PHP Foundation and help support the health and wellness of appin-need populationsapp in northern Indiana communities.
appWith approvals complete, we will now be working over the next several months to develop opportunities for both companies to continue to grow and leverage each otherapps strengths as we plan for future growth,app said Praveen Thadani, president of Priority Health.
Gary Shearer, president and CEO of Physicians Health Plan, said the organization is excited to join Priority Health and looks forward to appthe opportunities and enhancementsapp that should result for its members, employer groups, staff and the community.
Priority Health, with 30 years in the business, is the second largest health plan in Michigan. The health plan has a broad network of primary care physicians in Michigan and offers benefits options for employer groups and individuals, including Medicare and Medicaid plans.
Physicians Health Plan of Northern Indiana Inc. got its start in 1983. It is considered a leading commercial health plan, offering employer-sponsored benefits and third-party administration, primarily to members in Indiana and Ohio.
Both health plans describe their approaches as innovative and focusing on customer service.
PHP employs about 150 in Fort Wayne, and that number is expected to stay the same appfor the foreseeable future,app said Michelle Kearns, the local health planapps marketing communications director.
In mid-June, PHP said members could generally expect plans to remain the same through the end of this year and likely into 2025.
But the acquisition brings the potential for new and expanded products and plan offerings for employers and individuals in the PHP service area in the future, Kearns also said, as part of an email response Tuesday.
A Pittsburgh-based businessman said mergers and acquisitions in the health care industry usually hinder competition, which can affect pricing.
appWhen thereapps less choice, health plans take the liberty of increasing the price,app said Dr. Bill Hennessey, billing integrity officer with CareGuide, a company that negotiates appoutrageous medical billsapp on behalf of patients.
Hennessey thinks more companies should self-insure, but itapps important to evaluate trends with claims.
appYou canappt manage what you donappt measure, and if you donappt look at what your cost drivers are, you canappt manage ... Your costs are going to go up every year,app Hennessey said, during a telephone interview Tuesday afternoon.
Nationally, the average deductible is $6,000, but 80% of Americans never meet their deductible, he said.
Consumers can help stretch their dollars with health savings accounts and health reimbursement accounts when those are available.
Some savings might also be achieved, Hennessey said, when patients ask for the cash price of a service first and then compare that to what it might cost if billed under insurance.
PHP is a 501(c)(4) nonprofit and governed by a board of physicians. Priority Health is also a nonprofit. Despite the acquisition, the health plans have different concentration areas.
appThis acquisition brings together two companies that primarily serve different regions,app Kearns said, noting that Priority Health focuses on Michigan while PHP serves northern Indiana and northwest Ohio.
appThe intention is that, through this acquisition,app she said, appwe will be stronger together and better positioned to compete with larger, national carriers.app
