HHS team to help coordinate emergency recovery efforts in Flint

The Obama administration has tapped HHS to help lead the federal coordination of emergency recovery efforts to deal with contaminated water in Flint, Mich., the agency announced last week.

President Barack Obama declared a federal emergency but not a major disaster in Flint. That determination frees $5 million in immediate aid with the possibility of more assistance, for which the president would need to alert Congress.

HHS is working with the Federal Emergency Management Agency, which has been helping Gov. Rick Snyder's administration coordinate with other federal agencies.

“The goal of the federal response will be to help state and local leaders identify the size and scope of the problem, and work with them to make and execute a plan for mitigation of the short- and long-term health effects of lead exposure,” department Deputy Secretary Mary Wakefield said. An HHS team was expected last week in Flint.

Flint's water has had elevated levels of lead after corrosive Flint River water caused lead connections to leech into the city's drinking water. In mid-October, Flint switched back to Detroit's system of using Lake Huron for drinking water, but state officials still consider Flint's drinking water unsafe. —Associated Press

Fairview Health Services has bought out its joint venture partners in insurer PreferredOne. The plan saw significant growth after its initial entry into the Minnesota health exchange, but left shortly after experiencing losses.

Minneapolis-based Fairview, which also has a deal underway to integrate the University of Minnesota Physicians into a newly formed academic medical system, acquired North Memorial Health Care's 25% stake in the insurance company and the 25% stake held by PreferredOne Physician Associates.

Fairview was the sole other owner. Financial terms of the acquisition were not disclosed.

“This new ownership structure strengthens Fairview's already robust continuum of healthcare services, deepening capabilities that are critical in today's healthcare environment,” David Murphy, Fairview's interim CEO, said in a blog post announcing the deal. The insurer has 285,000 members.

Fairview had the option to buy its partners' shares after the system loaned PreferredOne $18.75 million in October 2014 and guaranteed another $40 million credit line, which the insurer has since used, according to financial statements. PreferredOne accounted for 5.7% of Fairview's patient revenue in 2014.

The insurers' financial losses followed its entry into Minnesota's health insurance exchange and it exited the exchange rather quickly. —Melanie Evans