Fairview Health Services announced today that it has acquired sole ownership of health insurer PreferredOne. For more than 30 years, Fairview and PreferredOne have worked together to deliver exceptional health care services and insurance. The ownership change is an important step for both organizations in continuing to provide quality health care for Minnesotans.
PreferredOne will operate as a wholly-owned subsidiary of Fairview under the continued leadership of David Crosby, PreferredOne president and CEO. Fairview chief financial officer Dan Fromm will continue to serve as board chair of PreferredOne.
“This new ownership structure strengthens Fairview’s already robust continuum of health care services, deepening capabilities that are critical in today’s health care environment,” says David Murphy, Fairview interim CEO. “PreferredOne brings expertise in care management, risk management and population health analytics, and it will be a key strategic asset within our health system as we continue our work to provide high quality care at a lower total cost.”
Across the country, partnerships between health care providers and payers are becoming more common as a strategy to achieve better outcomes for patients and members.
“PreferredOne is excited to begin this new chapter with Fairview,” says Crosby. “It’s this type of integration and alignment that will advance our ability to improve health care quality and cost effectiveness. PreferredOne will continue to operate with the same exceptional products, provider networks and services currently offered. Together, we will bring new innovations to market that meet our clients’ needs.”
“As a leader in population health management and accountable care, our intent going forward is to advance new innovations while building on products and services we already have in place,” says Fromm. “For example, our PreferredHealth product includes coordinated, proactive medical management services for its members using multiple care systems—Fairview, HealthEast and North Memorial. By working together as payer and providers, we are able to effectively identify and proactively reach out to patients who need care. That kind of partnership is beneficial for purchasers and good for people’s overall health.”
As it does today, Fairview will continue to collaborate with other health plan administrators in the region, as well, offering its high quality provider networks and services.
The PreferredOne ownership change was effective January 15, 2016, and was reviewed and approved by the Minnesota Department of Commerce. Previously, Fairview was 50 percent owner of PreferredOne, along with North Memorial Health Care and PreferredOne Physician Associates who each held 25 percent ownership.