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Tufts Health Plan and Harvard Pilgrim Health Care to Merge

by Jasmine Pennic 08/15/2019 Leave a Comment

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  • Tufts Health Plan and Harvard Pilgrim Health Care to Merge
  • Tufts Health Plan and Harvard Pilgrim Health Care to Merge

Harvard Pilgrim Health Care and Tufts Health Plan announced their intent to merge their nonprofit organizations. The new organization, yet to be named, will become one of the region’s largest nonprofit health services organizations and will serve close to 2.4 million members in Massachusetts, Maine, Connecticut, New Hampshire, and Rhode Island. Combined offerings include offering employer-sponsored plans; Medicare and Medicaid plans; Qualified Health Plans; and plans for those who are dually eligible for Medicare and Medicaid.

Benefits for Merger

The new organization will harness the combined strengths of the respective organizations and bring value to the community by:

– Improving affordability through scale and administrative cost efficiencies, providing high value, more affordable health plans to consumers

– Increasing access through geographic reach and product diversity by enhancing population health capabilities, enabling care for underserved communities and offering a broader set of insurance choices across age and income groups

– Improving quality of health through enhanced capabilities for population health and clinical engagement. The new organization will build upon a rich legacy of provider collaborations, promoting investments in population health capabilities

– Streamlining customer experience through investment in innovative tools and capabilities

Leadership Appointments

The board of directors will comprise equal representation from both organizations and will be chaired by Joyce Murphy, who currently serves as chair of the board for Harvard Pilgrim Health Care. Tom Croswell, president, and CEO of Tufts Health Plan will serve as CEO of the new organization. Michael Carson, who serves as president and CEO of Harvard Pilgrim Health Care, will serve as president and oversee the organization’s diverse business lines and subsidiaries.

The merger agreement was unanimously approved by both boards, is subject to multiple local and federal regulatory approvals during which time the organizations remain independent companies.

“Building upon our collective synergies and strengths – which includes being among the top-rated health plans in the country for quality – will unlock value that can be immediately reinvested in our members and the communities we have the privilege of serving,” said Greg Tranter, chair of the board for Tufts Health Plan. “I am excited about the future.”

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Tagged With: Healthcare Mergers & Acquisitions, medicaid, medicare, Population Health

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