The Health Plan, a West Virginia-based health insurer, will integrate with West Virginia University Health System, a nine-hospital system in Morgantown, the organizations said May 7.
Five things to know:
1. Under the integration, The Health Plan will become a subsidiary of WVU Medicine and operate under the WVU Medicine brand. The insurer will still be a nonprofit company with a separate board, but will gain access to shared resources at WVU Medicine.
2. The organizations said the collaboration was in response to “the acceleration of healthcare reform and government budgetary constraints for healthcare services.” They added, “It has become critical for healthcare providers and payers to align incentives to maximize efficiency and quality.”
3. WVU Medicine and The Health Plan said they plan to offer joint products to the market under the integration.
4. No layoffs are expected as a result of the transaction, the organizations said.
5. Specific terms of the deal are subject to board approval within both organizations, and each company will engage in a due diligence process.
Date: May 08, 2019