ProMedica plans to sell Paramount Health, its health insurance subsidiary, to Medical Mutual.
There would be no immediate change for members of either insurer and Paramount Health plans would still be available, Medical Mutual said Monday. The deal does not include Paramount Health's dental insurance plan.
Related article: Gentiva finalizes acquisition of ProMedica’s home care business
Terms were not disclosed. The transaction is expected to close May 1, pending regulatory approval. Paramount Health, which has 77,000 health plan members, would become a fully owned subsidiary of Medical Mutual.
"While ProMedica has taken deliberate actions to reduce costs and improve processes over the past few years, Paramount has struggled to be competitive," a spokesperson for ProMedica said in an email. "Paramount has lacked sufficient scale since its exit from Medicaid. Those factors influenced the timing of this planned transaction."
In November, Toledo, Ohio-based ProMedica sold its home health, hospice and pallative care business to Atlanta-based Gentiva Health Services, a home-based care provider.
Most of the 350 health insurance employees of Toledo, Ohio-based Paramount Health are expected to remain employed under Cleveland-based Medical Mutual, the ProMedica spokesperson said.
All ProMedica primary care providers, specialists, hospitals and outpatient care clinics would be a part of Medical Mutual's Medicare Advantage and individual Affordable Care Act provider networks, according to a news release.
