Kaufman Hall Advises Mercy Health and HealthSpan on Divesting Insurance Business

SKOKIE, Ill. – March 4, 2016 – This past week, Mercy Health and its contracting partner, HealthSpan Partners (“HealthSpan”), finalized a transaction transferring all of HealthSpan’s fully insured customers and divesting other select insurance assets to Medical Mutual of Ohio. Kaufman Hall served as the exclusive strategic and financial advisor to Mercy Health and HealthSpan on the transaction.

HealthSpan is a $450 million revenue insurance company providing fully insured products to approximately 70,000 members in both commercial and Medicare segments in Ohio. The organization also provides certain administrative services for approximately 35,000 self-insured members, including network access, medical management and employee assistance programs. 

Kaufman Hall began working with HealthSpan in September 2015 to assist in evaluating the best course of action related to its insurance and administrative services lines of business. This evaluation revealed that as a small insurance company in a highly competitive market, HealthSpan and its membership would be best served by divesting the organization’s insurance business to a larger insurer with a similar mission of helping members achieve their best possible health and quality of life. 

How can organizations develop population health management strategies best suited to their individual strengths, networks, and market conditions? Read the Kaufman Hall article.

Once divestiture was determined to be the optimal path, Kaufman Hall’s experts recommended an accelerated, controlled sale process to HealthSpan. The Kaufman Hall team assisted with all facets of the transaction including preparing marketing materials, contacting potential buyers, structuring the transaction, coordinating due diligence, advising definitive agreement negotiations, and ultimately closing the transaction.

To learn more about how Kaufman Hall is assisting healthcare organizations with partnership and divestiture decisions and transactions, contact Andre Maksimow at amaksimow@kaufmanhall.com or 847.441.8780.