The Federal Trade Commission has cleared the acquisition of a hospital-owned health plan by Coventry Health Care, Bethesda, Md.
FTC lets Mercy Health Plans sale proceed
Sisters of Mercy Health System, St. Louis, said in June that it had reached an agreement with Coventry to sell its 180,000-member Mercy Health Plans for undisclosed terms. The Roman Catholic hospital system said that selling the plan would allow the system to focus on its core mission of treating patients and also give the health plan the advantages of being part of a bigger insurance organization.
Also, despite the tremendous consolidation among health plans since MHP was founded in 1994, the communities served by the plan, mostly in Missouri but also in parts of Arkansas, aren't crying out for another insurance option, according to Sisters of Mercy.
Healthcare reform did not prompt the sale, according to Sisters of Mercy.
Completing the deal would give Coventry about 1.2 million members in a six-state region that includes those two states.
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