Dive Brief:
- Minneapolis-based Fairview Health Services announced Monday it has acquired sole ownership of health insurer PreferredOne, effective since Jan. 15.
- The insurer will operate as a wholly-owned subsidiary of Fairview under its current president and CEO, David Crosby.
- Before the acquisition, Fairview already had 50% ownership of PreferredOne, while North Memorial Health Care and PreferredOne Physician Associates each held 25%.
Dive Insight:
The acquisition continues the trend in which providers and insurers are teaming up to drive more seamless and cost-effective patient care. The terms of the deal were not disclosed.
The insurer experienced major growth when it first entered the MNsure exchange, but then retreated due to financial losses, reports the Star Tribune, adding that despite losses on those products in 2013, 2014 and early 2015, the insurer saw income from its role as a third-party administrator to larger-sized self-insured businesses.
Fairview told the Tribune it "is comfortable with the financial picture for PreferredOne when all business lines are taken into account, including the self-insured business."