Two of Michigan's largest provider-owned health plans are talking merger.
Henry Ford Health System in Detroit last week announced it has agreed to discuss a merger of its HMO with Mercy Health Plans, owned by Farmington Hills, Mich.-based Mercy Health Services.
Henry Ford's Health Alliance Plan is the state's second-largest HMO, with 540,000 enrollees in southeast Michigan, northern Ohio and greater Flint, Mich.
Mercy Health Plans operates Care Choices HMO and Preferred Choices PPO, which have 177,200 and 70,000 enrollees, respectively, in Michigan. Mercy Health Plans also has about 23,000 enrollees in Iowa.
Both systems operate Medicare and Medicaid products.
Mercy owns the state's largest provider network, and its plans are strongest in outlying areas of the Lower Peninsula, including Ann Arbor, Grand Rapids and Muskegon. HAP's presence is greatest in metropolitan Detroit and Flint.
Henry Ford's collaborations and joint ventures include management of 248-bed Mercy Hospital in Detroit, joint ownership of 380-bed St. Joseph's Mercy Hospitals and Health Services in Clinton Township, and collaboration at 417-bed St. Joseph Mercy Oakland in Pontiac.
HAP reported net income of $21.5 million on revenues of $902.5 million for the year ended Dec. 31, 1997.
Mercy's health plans had net income of $3.1 million on revenues of $249 million for the year ended June 30, 1997.