Health plan Medica to invest in Dean Health Plan for value-based relationship
Dean Health Plan is a subsidiary of Catholic not-for-profit integrated health system SSM Health.
Photo: Martin Barraud/Getty Images
Midwest nonprofit health plan Medica and Dean Health Plan of Madison, Wisconsin, are forming a value-based relationship.
Medica is investing in Dean Health Plan, a subsidiary of Catholic not-for-profit integrated health system SSM Health, based in St. Louis, Missouri, the companies announced.
They did not release financial details.
The agreement is expected to be finalized sometime during the fourth quarter of the year, pending necessary regulatory approvals. The two companies will maintain their respective health plan brands and products, which include those under the Medica name, along with Dean Health Plan, Prevea360 and WellFirst Health.
Members, employers, brokers, and providers will see enhanced service and products and no near-term changes, the companies said.
WHY THIS MATTERS
The aim is for Medica and Dean Health Plans to use operations, technology and SSM's experience in provider and payer integration, to drive care, lower costs and improve the patient and member experience.
This relationship ensures the major components of healthcare delivery – physician, hospital and insurance – are working together to drive unnecessary costs out of the healthcare system while improving quality of care, the companies said.
SSM Health and Dean Health Plan have experience in value-based care delivery, driven by provider and plan integration, said Randy Combs, CFO of SSM Health.
"This relationship, with its deep local focus, is an opportunity to further enhance the tools available to members, employers, brokers and others and improve the overall health care experience for everyone we serve," said Dean Health Plan President Les McPhearson.
THE LARGER TREND
Dean Health Plan serves almost 500,000 members in Wisconsin, Missouri, Illinois and Oklahoma.
Medica provides coverage and related services in the employer, individual, Medicaid and Medicare markets. It operates in Minnesota, Iowa, Kansas, Missouri, Nebraska, North Dakota, Oklahoma, South Dakota and Wisconsin.
ON THE RECORD
"This important relationship is driven by our mutual commitment to add value in the healthcare experience through improved health outcomes and lower costs for our members," said Medica President and CEO John Naylor. "We believe together we can develop and deliver innovative solutions that best support people's health care needs in the communities we serve."
Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com
