Two not-for-profit managed care companies are joining forces, bringing the year’s total to 13 deals in the sector.
On August 17, 2017, Medica Health Plans, Inc., which provides health care coverage in the employer, individual, Medicaid and Medicare markets in Minnesota, Iowa, Kansas, Nebraska, North Dakota, South Dakota and Wisconsin, announced it was acquiring Mayo Clinic Health Solutions. Financial terms were not disclosed.
The target, a division of Mayo Clinic, is a health benefits management company and licensed third party administrator that provides plan administration services and health care products to 260,000 members through 28 customers.
Mayo Clinic stated the deal sets the stage for future collaboration that could be important as more health plans adopt “narrow network” rules that make it tough for patients to visit certain doctors and hospitals. The arrangement may also offer opportunities to help improve access for patients with serious and complex medical conditions. The change will be effective by the end of 2017.
