Thursday, October 3, 2019

Cambia Deal Put on Hold After North Carolina Blues CEO Resigns

Facing a growing firestorm over an alleged drunken driving incident, Blue Cross Blue Shield of North Carolina CEO Patrick Conway, M.D., resigned from his post. Meanwhile, the Blues insurer's "strategic affiliation" with a fellow payer has been put on hold.
On June 22nd, according to a report from The News & Observer, Conway was arrested after striking a commercial vehicle while driving on a North Carolina highway with his two daughters as passengers. Conway, who allegedly exhibited signs of intoxication and refused a breathalyzer, faces charges of driving while impaired, reckless driving and misdemeanor child abuse.
Conway wrote in a statement on Twitter that he stepped down from his daily duties and completed 30 days of inpatient substance use treatment following the incident. After news of his arrest became public, however, he resigned on Sept. 26 at the request of the Blue Cross Blue Shield of North Carolina board of trustees. Current chief operating officer, Gerald Petkau, will serve as interim CEO, the insurer said in a statement.
In March, Blue Cross and Blue Shield of North Carolina announced that it and fellow Blues insurer Cambia Health Solutions struck a deal for a "strategic affiliation," which would involve merging operations and administrative functions but keeping their respective health plans and provider networks independent. The two not-for-profit plans have a combined net revenue of $16 billion and more than 6 million covered lives.
Now, the North Carolina Blues insurer "has decided to put its proposed strategic affiliation with Cambia Health Solutions on temporary hold," a spokesperson says. In a statement, Cambia added that the two insurers "have mutually agreed to withdraw their respective Form A applications for regulatory approval." The two companies would have to refile if they want to merge in the future.
From Health Plan Weekly

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