Blue Cross NC acquiring FastMed locations in urgent care expansion
In addition to the acquisition, the company has named Jim Moffett as FastMed's new CEO, the company said.
Photo: Jose Luis Pelaez/Getty IMages
Blue Shield and Blue Cross of North Carolina is expanding its urgent care presence in the state, having officially closed a deal to nab 55 FastMed urgent care clinics, which the insurer said was meant to address the lack of providers in rural areas.
Any North Carolinian and those visiting the state, regardless of their health insurance or carrier, will have access to all FastMed locations, said Blue Cross NC.
In addition to the acquisition, the company has named Jim Moffett as FastMed's new CEO.
"As I've traveled across North Carolina and listened, it is clear that access to basic primary care services is a critical need," said Blue Cross NC CEO Tunde Sotunde. "With approximately half of FastMed's clinics located in rural areas of our state with limited access to healthcare resources, I believe this is a vital investment in North Carolina."
WHAT'S THE IMPACT?
Blue Cross NC promised that FastMed, which provides a wide range of care options such as preventive, telehealth, occupational health, primary and urgent care, will continue to be a critical resource in North Carolina communities, including those facing provider shortages.
Like other healthcare providers, FastMed has felt the impacts 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. Blue Cross NC's short-term plans for FastMed include returning to pre-pandemic service operations and investing in ways to further enhance the patient experience.
FastMed locations in North Carolina will continue serving all North Carolinians and those visiting the state regardless of their health insurance or carrier, not just Blue Cross NC members. Blue Cross NC members can search for in-network care locations through the Blue Connect portal.
Blue Cross NC has been a non-controlling minority investor in FastMed since 2012. FastMed will operate independently from Blue Cross NC, which is a fully taxed nonprofit company headquartered in Durham.
As for Moffett, he joins FastMed after more than two decades in an executive capacity with various mission-driven and customer-focused organizations. He has a history of leading ambulatory practices, which include primary and urgent care businesses.
Moffett earned a Bachelor of Science in Industrial Engineering from Geneva College in Pennsylvania and an MBA from the University of Scranton.
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.
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.
