Blue Cross NC to acquire FastMed's North Carolina locations
Blue Cross NC will acquire 55 FastMed locations, with the intent to improve access and the patient experience.
Photo: Jose Luis Pelaez/Getty Images
Blue Cross and Blue Shield of North Carolina has agreed to acquire all North Carolina-based locations of FastMed, a company that offers telehealth, urgent and primary care, occupational health and preventive services.
In all, Blue Cross NC will acquire 55 FastMed locations, with the companies saying they would work together "to fortify healthcare capacity in the state," with the intent of boosting access and affordability.
The companies said they would invest in ways to enhance the patient experience at the FastMed locations.
WHAT'S THE IMPACT?
Like other healthcare providers, FastMed has felt the impact of provider shortages that were magnified by the COVID-19 pandemic: Between 2016 and 2021, North Carolina lost about 9% of its direct care workforce, the companies said.
As the healthcare industry continues to change rapidly, new partnerships and affiliations to improve patient health and lower healthcare costs are starting to increase. Blue Cross NC's short-term plans for FastMed would include returning to pre-pandemic service operations.
"With approximately half of FastMed's clinics located in rural areas of our state with limited access to healthcare resources, this is an important investment in North Carolina," said Tunde Sotunde, Blue Cross NC's CEO. "This pending acquisition would fortify critical access points of care across the state and would benefit everyone, not just Blue Cross NC members. As a North Carolina-based, mission-driven, fully taxed, not-for-profit company, we serve all North Carolinians."
The pending acquisition is planned to close in early 2024.
Blue Cross NC, which has been a non-controlling minority investor in FastMed since 2012, has agreed to acquire only FastMed's North Carolina locations. FastMed would operate independently from Blue Cross NC, which is a fully taxed nonprofit company headquartered in Durham, North Carolina.
FastMed would continue to serve all North Carolinians and those visiting the state, not just Blue Cross NC members. Those who are members can search for in-network care locations through the Blue Connect portal.
The completion of this pending acquisition is subject to the fulfillment of customary closing conditions.
THE LARGER TREND
About 85% of Blue Cross NC's current customers with individual ACA plans qualify for subsidies for their 2024 plans. Subsidies vary by plan and household income. The federal American Rescue Plan Act expanded these subsidies to more people, lowering premiums to no more than 8.5% of customers' household incomes. In 2022, these expanded subsidies were extended for three years through the federal Inflation Reduction Act.
Blue Cross NC would continue offering renewal of what are considered "transitional plans" in 2024, for both individuals and small groups. These are plans purchased between March 2010, when the ACA was signed, and October 2013 when regulations went into effect. Transitional plans do not meet ACA requirements but are allowed by federal law. The plans cannot be sold to new customers.
In 2022, Blue Cross NC made a play for the mental health space, joining forces with Headway, a company that works with insurers to deliver behavioral healthcare. The collaboration was meant to address what the company sees as a serious problem: a shortage of mental health professionals in the state.
The collaboration came as Blue Cross NC was investing more than $2 million to support 11 community organizations working to improve access to behavioral health services. The initiative is aimed at enhancing access in rural and marginalized communities and in regions of the state designated as Health Professional Shortage Areas.
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com
