Sparrow and Blue Care Network of Michigan Announce Agreement for BCN to Acquire Membership of Physicians Health Plan of Mid-Michigan
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SOUTHFIELD, Sept. 15, 2009 - An agreement with Sparrow Health System was approved late yesterday for Southfield-based Blue Care Network to purchase the membership of Lansing-based Physicians Health Plan of Mid-Michigan. The transaction requires regulatory approval from the Michigan Office of Financial and Insurance Regulation. In addition, the Medicaid transaction requires approval from the Michigan Department of Community Health. It is anticipated that the transaction will be finalized before the end of 2009.
"Blue Care Network has been a member of the Mid-Michigan business community for many years and looks forward to serving PHP Mid-Michigan's customers and members," said Jeanne Carlson, BCN president and CEO. "BCN offers a larger, statewide physician network, extended out-of-state coverage through its arrangements with other health plans, award-winning disease management and preventive services, and the most recognizable health care card in the nation."
"For our first 113 years and always in the years ahead, Sparrow's fundamental reason for existing is to provide quality care and memorable patient experience," said Dennis Swan, President and CEO of Sparrow. "We believe this transaction to sell certain assets of PHP Mid-Michigan to Blue Care Network, a not-for-profit partner with a long heritage of commitment to improving the health and serving the residents of Mid-Michigan, enables Sparrow to strengthen our ability to care for and serve Mid-Michigan's families for generations into the future."
Physicians Health Plan of Mid-Michigan is a Lansing-based health plan with close to 80,000 members, including approximately 18,000 Medicaid HMO members.
"Aligning with a local company will make it easier for PHP members to transition their health care coverage," said Carlson. "Many of the physicians, hospitals and other health care providers that currently participate in PHP Mid-Michigan's provider network are also affiliated with Blue Care Network. This means that most PHP members will be able to continue with the same health care providers once their coverage transitions to Blue Care Network."
Carlson said the intent is for the acquisition to positively impact PHP and BCN customers.
"The transaction provides value to PHP and BCN customers by spreading administrative costs across expanded membership, helping keep health care costs affordable and offering long-term value to customers, members and participating providers," Carlson said. "It also allows Sparrow Health System to focus on its core services of providing quality, compassionate health care to the Mid-Michigan community."
The organizations pledge to make the transition as seamless as possible. There are no immediate changes for PHP Mid-Michigan groups as a result of the announcement. They can continue to receive their PHP coverage, use their PHP ID card, visit their PHP network physician and contact PHP customer service for assistance. PHP Mid-Michigan physicians can continue to send health care claims for PHP members in their normal manner.
Following completion of the transaction, BCN is committed to providing a smooth transition to BCN for PHP Mid-Michigan members and customer groups. PHP Mid-Michigan groups will receive extensive communications from BCN prior to transitioning coverage so BCN can match them with the BCN products that best fit their needs.
PHP has both HMO and Medicaid membership.
BCN, Sparrow and PHP Mid-Michigan pledge to make the transition as seamless as possible and to maintain a high level of service to members, customers and providers. PHP Mid-Michigan associates will continue in their current positions until completion of the sale after which BCN and PHP Mid-Michigan will agree upon a staffing plan for the remainder of the transition period. After the transition period, Sparrow and PHP will assist PHP associates in transitioning to other positions at Sparrow or applying for positions at BCN locations or in the community.
Blue Care Network of Michigan features award-winning disease management programs and the largest HMO network of physicians and hospitals in the state, with more than 4,300 primary care physicians, 10,200 specialists and 116 hospitals. Blue Care Network, a nonprofit corporation, is the affiliated HMO of Blue Cross Blue Shield of Michigan and an independent licensee of the Blue Cross and Blue Shield Association. For further information, visit MiBCN.com.
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