- Tired of steep losses, Catholic Health Initiatives is looking to sell its health plan subsidiary, Modern Healthcare reported.
- QualChoice Health, previously known as Prominence Health, sells Medicare Advantage and commercial plans to employers in six states.
- CHI began buying up health plans three years ago as a way to adhere to the Affordable Care Act and compete with other carriers.
According to financial documents obtained by Modern Healthcare, QualChoice lost $97 million in the first nine months of fiscal 2016, ended March 31 — up sharply from $19 million in the same period a year ago. The amount of premiums collected also increased by 41% to $377 million during the nine-month period.
CHI ended the nine months with a $265.6 million operating loss and a $568.1 million net loss.
The Englewood, CO-based hospital system’s decision to scuttle its insurance business follows a similar decision by Mercy Health earlier this year. In January, the Mercy affiliate HealthSpan Partners announced it was disbanding its physician network as a result of major losses in 2015. According to a financial report, HealthSpan lost $117 million during the first nine months of 2015, compared with $30 million the previous year.