Two Massachusetts payors, Tufts Health Plan and Cambridge Health Alliance, are in talks to partner, according to a Boston Globe report.
Tufts may take control of CHA’s managed care plan, Network Health, to expand its reach into the health insurance market for low-income populations. CHA operates safety-net hospitals and has been seeking either a buy or affiliate. Network Health serves nearly 170,000 Medicaid patients.
Cambridge Health Alliance’s CEO, Dennis Keefe, said Tufts would likely become a majority owner of Network Health while CHA would retain ongoing ownership interest, according to the report.
The two companies have been discussing the matter for months, according to the report, and this potential deal follows word of a possible merger between Tufts Health Plan and Harvard Pilgrim Health Care, announced last month. A Tufts executive said talks with CHA are completely separate from conversations with Harvard, since the health plans have not yet merged and remain competitors, according to the report.
Read the Boston Globe report on Tufts Health Plan and Cambridge Health Alliance.
Read more about Massachusetts payors:
– Insurance Plans Restricting Care to Low-Cost Hospitals Well Received by Employers
– BCBS of Massachusetts Reports Success of New Fixed Payments for Physicians
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