Nearly three months ago, it appeared that the sale of QualChoice to St. Vincent Health System was imminent.
But as of Wednesday, the Arkansas Insurance Department had not received an application for the Catholic hospital to acquire control of the second-largest health insurer in the state.
But Arkansas Insurance Commissioner Jay Bradford said he is optimistic that the deal will be consummated, soon possibly in the next two to three weeks.
QualChoice President and Chief Executive Mike Stock said in an email Wednesday:
“St. Vincent Health System, owned by Catholic Health Initiatives, has been an investor in QualChoice for many years. We have a very strong relationship and continue to have ongoing discussions, but are not in a position to publicly comment at this time. However, our shareholders remain very committed to QualChoice and its mission. This commitment is a good thing for our customers and our business partners.”
Bradford said the plan is “very viable.” Once an application is received, a public hearing will be held, he said. Bradford reiterated that he thinks that Catholic Health “will put a lot of financial capacity behind the company,” which is a distant second to Arkansas Blue Cross and Blue Shield.
QualChoice is in five of the state’s seven underwriting regions, he said, adding that it likely will go statewide - and beyond.
Catholic Health Initiatives has $19.9 billion in assets in 18 states, including 87 hospitals and three medical schools, Bradford said.
“I predict they’ll expand QualChoice coverage to [other states],” Bradford said.
Denver-based Catholic Health operates a Medicare Advantage Plan, SoundPath Health in Washington state. Such plans provide Medicare Parts A and B benefits.
Messages left for Bishop Anthony Taylor, head of the Little Rock Catholic Diocese and effectively head of the church in Arkansas, were not returned.
QualChoice offers coverage for contraceptives and related reproductive services, which are in conflict with the U.S. Conference of Bishops’ Ethical and Religious Directives.
QualChoice was formed by the University of Arkansas for Medical Sciences in the mid-1990s during a period when creation of managed-care networks was seen as a way to control rising health-care costs, according to R.T. Fendley, senior associate hospital director for UAMS Medical Center. The company was formed with the assistance of St. Vincent and other organizations that are now the insurer’s shareholders.
The other shareholders in QualChoice are Arkansas Children’s Hospital, Tenet Health System Medical Inc., a national hospital chain, and TriZeto, a software company that is the majority shareholder.
The health plan for the University of Arkansas System, including the medical school, has been administered by United Healthcare for more than a year.
Business, Pages 25 on 03/27/2014