Medical Mutual set to acquire ProMedica insurance subsidiary
Paramount will continue to offer its health plans, with no immediate change to how current members do business with either company.
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Cleveland-based Medical Mutual has announced its intent to purchase Paramount Health, a Northwest Ohio-based health insurance company owned by ProMedica.
Paramount, which offers Medicare Advantage, Individual ACA, commercial group and short-term insurance plans, is headquartered in Toledo and does business primarily in Ohio and Michigan.
Pending regulatory approval, the transaction is expected to close by May 1.
WHAT'S THE IMPACT?
Steve Glass, Medical Mutual's president and CEO, said the two companies share the "common vision" of helping people to live healthier.
"Paramount, like Medical Mutual, is renowned for its outstanding local care and excellent service," he said. "Having this quality organization join the Medical Mutual family of companies presents a unique opportunity to strengthen our position as a trusted healthcare navigator in Ohio."
As a wholly owned subsidiary of Medical Mutual, Paramount will continue to offer its health plans, with no immediate change to how current members do business with either company.
Medical Mutual and Paramount are currently working through transition plans. Medical Mutual expects to welcome Paramount employees into its organization when the transaction closes.
Medical Mutual will continue to deliver its own branded products and services in the Northwest Ohio area that has access to its provider networks, which includes the ProMedica health system. All ProMedica primary care providers, specialists, hospitals and outpatient care clinics – already part of many Medical Mutual commercial group networks – are now part of the company's Medicare Advantage and Individual ACA provider networks.
THE LARGER TREND
Mergers and acquisitions are expected to rebound in 2024 after M&A activity fell to its lowest level in 10 years globally in 2023, according to Reuters. However, federal scrutiny by the Federal Trade Commission and Department of Justice could hamper dealmaking.
Dealmaking last year was weighed down by high interest rates, economic uncertainty and regulatory scrutiny.
ON THE RECORD
"As ProMedica has further sharpened its focus on core health system operations, we embarked on a thoughtful process to transition ownership of our Paramount health insurance business," said Arturo Polizzi, president and CEO of ProMedica. "We were hopeful we could identify a potential new owner with a similar mission and commitment to community, and we found those qualities in Medical Mutual. The company has a long history of providing various health insurance plans, and we expect that Paramount employees transitioning to Medical Mutual will be well positioned to continue providing exceptional service to members and employers."
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.
