Fairview Health Buys Second Health Plan

Fairview Health Services is building out its managed care platform. In January, the Minneapolis-based nonprofit, integrated health system announced the acquisition of PreferredOne, which serves more than 1,500 employers and 285,000 members in Minnesota. The company saw dramatic growth in the first year of MNsure, the state’s health insurance exchange, but was forced to drop out after $139 million in financial losses.

In April. Fairview signed a letter of intent to acquire UCare., an independent, not-for-profit health paln providing health care and administrative services to members throughout Minnesota. UCare will become a wholly-owned subsidiary of Fairview, and will join PreferredOne to form Fairview’s health plan division.

The two companies, which are the fourth and fith largest in Minnesota, offer complementary portfolios of services. PreferredOne handles third-party administration and health insurance products for employers, while UCare is focused on individuals eligible for Medicare, Medical Assistance and MNsure plans. The parties expect this transaction will close in mid-summer.

 

 

 

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