The two Michigan-based healthcare organizations received final regulatory approval ahead of schedule.
Total Health Care and Priority Health received final regulatory approval from the Michigan Department of Insurance and Financial Services (DIFS), according to a press release Thursday afternoon.
The two Michigan-based healthcare organizations, which announced plans to merge in late August, plan to complete the deal by the end of 2019.
Prior to receiving approval from state regulators, Total Health Care members approved the merger earlier this fall.
"We are pleased with the support this exciting new partnership has already received from the Detroit community, current Total Health Care members and now industry regulators," Joan Budden, CEO of Priority Health, said in a statement. "With this approval from DIFS, we remain on track to complete this agreement by January 1, 2020 that will bring together two of Michigan’s longest-serving and most highly-ranked health plans."
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.
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.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.