Lebanon, N.H.-based Dartmouth Hitchcock Medical Center's sale of its Matthew Thornton Health Plan to Blue Cross and Blue Shield of New Hampshire closed last week in a complex deal worth an estimated $46.5 million.
The deal closed after gaining approval from the New Hampshire insurance commissioner.
The Blues will make continuing payments to Dartmouth Hitchcock and a foundation for the next seven years that could total as much as $17.5 million, depending on the HMO's performance.
Slightly more than $12 million, or about half the base purchase price, is earmarked for the creation of a new not-for-profit charity, called Healthy New Hampshire Foundation. The foundation will support healthcare access for the poor in New Hampshire.
In addition, the foundation could reap as much as $10.5 million in continuing payments over the next seven years.
Blue Cross and Matthew Thornton announced the transaction in September. It follows two separate attempts by Matthew Thornton to merge with Harvard Pilgrim Health Care, based in Brookline, Mass. (Sept. 8, p. 12).
After Cigna's Healthsource unit, Matthew Thornton is the second-largest HMO in New Hampshire, with 155,000 covered lives throughout northern New England.