Boston-based Partners HealthCare has decided to keep Neighborhood Health Plan due to the insurer's improved financial condition, according to a report from The Boston Globe.
The news comes a few months after Partners considered selling Neighborhood Health because of record-high losses.
The insurer, which Partners acquired in 2012, lost more than $100 million in the fiscal year that ended Sept. 30, 2014 as it dealt with an inundation of sick patients, high use of a costly hepatitis C drug, and low reimbursement rates from Massachusetts, according to the report. However, its finances have since improved due to higher reimbursement rates, fewer patients needing the hepatitis C drug, and fewer patients needing expensive medical care, the report reads.
Neighborhood Health is carefully looking at what its new membership is like this year so it has an idea of whether it is going to have a repeat of 2014, and so far it has not repeated, David Segal, who became the new chief executive of Neighborhood in February, told The Boston Globe.
According to Mr. Segal, Neighborhood Health is expected to reach profitability again next year.
More articles on payer issues:
UnitedHealth posts $1.4B profit for Q1
UnitedHealthcare, Walgreens collaborate on health incentive initiative
Anthem makes 'unheard of' offer to hospitals