by Paige Minemyer | Oct 14, 2019 5:05pm
Blue Cross and Blue Shield of North Carolina and Cambia Health
Solutions have jointly decided to end their talks to enter a "strategic
affiliation."
The boards of both insurers "mutually" agreed to
suspend their efforts to enter into the affiliation agreement, which would have
united the two payers under a joint corporate structure. The merger was put on hold late last month after
it was revealed that then-Blue Cross NC CEO Patrick Conway had been charged
with driving while intoxicated over the summer.
In a joint statement, the insurers said they had
already begun to withdraw regulatory approval requests after the deal was
paused.
"Blue Cross NC and Cambia look forward to ongoing
collaboration as licensees of the Blue Cross and Blue Shield Association and
will continue to make strategically aligned investments together as co-owners
of Echo Health Ventures," they said in a statement.
Under the affiliation plan, the two insurers
would share a corporate structure but would still operate with local
independence. Conway was tapped to lead the joint company as its CEO.
Conway resigned from his post at Blue Cross NC amid the
firestorm surrounding his arrest.
"I also understand that I must continue to work hard to
earn back the trust I’ve lost based on my actions," Conway said in
a statement on his Twitter account. "I therefore am resigning my
position as CEO of Blue Cross Blue Shield of North Carolina, and will continue
to respect and honor the legal process. In time, I look forward to continuing
my work ensuring everyone has access to high quality, affordable
healthcare."
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