1) SSM Health and Medica have finalized a partnership they announced in August. SSM Health's Dean Health Plan is now a joint venture between the two not-for-profit organizations, with Medica serving as managing partner and St. Louis-based SSM Health retaining a "significant ownership stake," per a news release. An SSM Health spokesperson wouldn't divulge what proportion of the joint venture the health system owns.
2) Les McPhearson, who became president of Dean Health Plan in 2020, has left the organization. The SSM Health spokesperson declined to disclose whether McPhearson's departure was voluntary. McPhearson oversaw the insurance subsidiary while the Medica deal was being developed. Dave Docherty, formerly Dean Health Plan's chief growth officer, is the new joint venture's president.
3) Both companies will maintain their respective health plan brands and products, including those under Medica, Dean Health Plan, Prevea360 and WellFirst Health. Members, employers, brokers and providers won't see any near-term changes, but can expect "enhanced service and products" in the future, the companies said.
4) The joint venture will be overseen by a board of directors with equal representation from SSM Health and Medica. Medica CEO John Naylor will chair the panel.
5) SSM Health posted a slim, 1.4% operating margin in calendar 2020, having generated $114 million in operating income on $8.3 billion in revenue. The 23-hospital system's margin improved slightly to 2.5% in the quarter ended Sept. 30. Medica generated $78 million in operating income in calendar 2020 on $1.1 billion in revenue, a 6.9% margin.
