The Health Plan clarifies that its marriage with WVU Medicine is off (highlighted)
CHARLESTON, W.Va. — The Health Plan says its proposed long-term partnership with WVU Medicine is off.
The Health Plan, a managed care organization based in Wheeling, put out a statement on Wednesday titled, “The Health Plan and West Virginia University Health System agree to terminate transactional agreement.”
The bottom line, according to The Health Plan, is the two will no longer become a single entity.
The statement confirmed that the managed care organization on Nov. 27 notified the state Insurance Commission that a deal proposed months ago has been terminated.
“While this effective transaction is no longer moving forward, The Health Plan remains committed to building a statewide integrated healthcare finance and delivery network that will include all major health systems,” the Health Plan stated.
The suggestion of a broader network including all major health systems may align with aspects of a statement put out a day earlier by WVU Medicine.
That statement said the relationship was being re-evaluated but suggested the two organizations were better off in a committed relationship over the long haul.
“Both The Health Plan and WVU Medicine continue to believe that coming together is critical, as both believe they can better manage the healthcare challenges of West Virginia more effectively together than apart,” WVU Medicine stated.
“To that end, they both remain committed to building an integrated healthcare finance and delivery network, one that will allow for the better coordination of care and management of the population’s health.”
But WVU Medicine acknowledged that a proposed partnership between the companies would not be what was described last spring.
“As they continue to work towards that goal, they have agreed to move away from the original transaction and are going back to the drawing board to make sure the partnership is the ultimate win-win and that each is optimally positioned to enter this new model of providing healthcare in West Virginia.”
Under the proposed partnership announced in May, the West Virginia University Health System would have integrated with The Health Plan.
The proposal meant WVU Medicine would have provide the healthcare at nine hospitals, and The Health Plan would provided managed care services for people who are insured through the company.
The resulting healthcare footprint was already having a ripple effect.
Charleston Area Medical Center, another major health care provider, in September informed The Health Plan it would terminate its contract at the end of this year.
At the time, Health Plan President Jim Pennington said CAMC’s decision was a reaction to the partnership with WVU Medicine.
“CAMC sees that as an aggressive play on WVU’s part. In our meeting they called them ‘the northern aggressor’ several times,” Pennington said earlier this year.
Pennington, The Health Plan’s president, announced in October that he intended to step down at the end of the year.
Today’s announcement does not change or affect coverage for anyone insured by The Health Plan who receives services from West Virginia University Health System facilities, the company clarified.
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