Blue Cross and Blue Shield of Michigan has agreed to purchase PPOM, a privately held company that manages provider networks in Indiana, Kentucky, Michigan and Ohio.
Southfield, Mich.-based PPOM operates networks for self-insured employers and third-party administrators, including 148 hospitals and 17,000 physicians. Its 1995 sales were $33 million.
PPOM will continue to function independently, according to a joint statement.
The purchase price was not released. Both sides hope to finalize the transaction by year-end.
Richard Whitmer, president and chief executive officer of the Detroit-based Blues, called PPOM "a well-run company with a proven record of growth."
PPOM spokeswoman Patricia McCarthy attributed the sale to "market forces at work. You see more and more partnerships such as this as the market calls for restructuring and consolidations."