A local health plan provider with more than 52,000 members and a more than 40-year history is being acquired by a Michigan-based organization.
Physicians Health Plan of Northern Indiana would become part of Priority Health, which has 1.3 million members, according to a news release Wednesday. The price was not disclosed.
The deal could close by the end of this year, assuming required approvals are completed.
Priority Health and Physicians Health Plan, commonly referred to as PHP, do not expect significant changes to product lines and member coverage as a result of the transaction, a news release said.
appJoining Priority Health has great potential to offer additional resources and innovation to PHPNI customers and members. We expect this transaction will benefit the communities and businesses we serve,app Gary Shearer, PHPapps president and CEO, said in a statement.
Praveen Thadani, president of Priority Health, said his organization looks forward to providing high-quality, affordable coverage to customers and members of PHP.
appThis will also help simplify and enhance the experience for members of both plans who live near the Indiana or Ohio borders,app Thadani said in a statement.
Priority Health, with corporate offices in Grand Rapids, Michigan, formed in 1992 by the merger of Butterworth HMO and Lakeshore HMO, according to its website.
Financial proceeds of the transaction will advance the mission of the PHP Foundation, the release said, adding that it will also enhance the ability to support the health and wellness needs of unserved and in-need populations in northern Indiana communities.
PHP is a nonprofit, 501(c)(4) and governed by a board of physicians. Priority Health is also a nonprofit.
Employers offering PHP coverage were notified Wednesday of the pending acquisition and notifications were being sent to physicians and other providers, Michelle Kearns, marketing communications director, said through email.
PHP has 155 employees, she said. No staffing changes are planned.
appThe experience and knowledge of the PHP team was one of the most appealing aspects of this opportunity,app Kearns said.
Asked who initiated the acquisition talks, she said growth and expansion is always part of PHPapps strategic plan. Leadership often explores partnerships that could move the business forward.
appThe presidents of PHP and Priority Health met a few years ago and have continued building a relationship throughout that time, exploring the potential of different partnership opportunities,app Kearns said.
The acquisition is still subject to several approvals.
The PHP Physician Membership will need to vote on the acquisition and the Indiana Department of Insurance also needs to approve it, Kearns said. Also, as of July 1, new legislation requires Indiana attorney general approval.
PHP members can generally expect plans to remain the same through the end of this year appand likely into 2025,app Kearns said. Current member benefits and ID cards will not change.
If all approvals are given and the acquisition goes through, 100% of the net proceeds will go to the PHP Foundation, Kearns said.
In April, the foundation granted $500,000 across 23 organizations in northern Indiana. Organizations that received funding include Matthew 25, Neighborhood Health, Super Shot, LOGAN Community Resources in South Bend and Maple City Health Care Center in Goshen.
