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Analysis

Priority Health, Total Health Care Announce Merger

By Jack O'Brien  
   August 29, 2019

The two Michigan-based healthcare organizations will also be establishing a $25 million foundation to improve health outcomes in Detroit.

Priority Health, the Grand Rapids, Michigan-based health insurer, announced plans to merge with Total Health Care, a Detroit-based health maintenance organization (HMO), Wednesday afternoon. 

Both organizations will continue operating in their current locations as part of the deal, which is expected to close in early 2020 after receiving approval from Total Health Care members and Michigan state officials, according to a press release.

As part of the merger, the two Michigan-based healthcare organizations will also be establishing a $25 million foundation to improve health outcomes in Detroit.

Related: Steering Motor City Healthcare: A Q&A With Henry Ford Health System CEO Wright Lassiter III

Priority Health and Total Health Care both feature sizable imprints on the Wolverine State, with Priority serving more than 1 million members while Total Health Care operates more than 2,500 health care centers in five counties surrounding the Detroit metropolitan area.

In its press release, Priority Health stated that the insurer saw its membership in the Detroit region increase 63% since 2014.  

Joan Budden, CEO of Priority Health and Detroit native, praised her counterparts at Total Health Care for their commitment to providing healthcare access in the Detroit market.

"We’re excited to welcome Total Health Care's talented leaders and employees into the Priority Health family and look forward to partnering with them to ensure that more consumers have access to high-quality, affordable health plans," Budden said in a statement. 

Related: Why Some See Healthcare's Vertical Mergers as Good and Necessary

Randy Narowitz, CEO of Total Health Care, echoed Budden's sentiments on how the merger will benefit the Detroit community. 

"This partnership with Priority Health, one of Michigan’s leading health insurance plans, will provide Total Health Care with additional resources and stability, and allow us to continue to provide our members with the quality care they have come to expect from Total Health Care at a price they can afford," Narowitz said in a statement.

Related: Megamergers Take Center Stage in M&A Activity

Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.


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