Posted on February 9, 2010.
Praeger OKs sale of PHS in Coventry Kansas Insurance Commissioner Sandy Praeger announced Monday it has approved the sale of preferred health systems Coventry Health Care.
The approval was signed on December 24 and follows hearings in Wichita in early.
The Office of the Attorney General's Kansas and the U.S. Department of Justice may also weigh in, Praeger said, but "they are limited really more related to market competition and market consolidation." A spokeswoman for the attorney general's office said: "We are taking no action to block the merger." Coventry and Via Christi Health announced in early October that they had signed an agreement for the sale of PHS, a subsidiary Via Christi.
Praeger said Kevin Conlin, president and CEO of Via Christi Health has made a good deal for the sale in one of the hearings, saying that owning an insurance company was not compatible with the mission Via Christi first to provide health care.
Praeger approval of the sale includes stipulations agreed to Coventry. She said they stem from concerns expressed at the first hearing, especially on MHNet, Coventry director for mental health benefits.
If Coventry do not comply with them, she said, the Insurance Department could impose sanctions or fines or even revoke its license.
They require: - For at least a year, Coventry offers a quarterly report showing a network of suitable suppliers to provide services to policyholders.
- For a year, Coventry offers a quarterly report on progress made in improving the performance of MHNet.
- Coventry will not MHNet additional responsibilities for at least one year or until Praeger believes that progress has been made.
- Coventry will be no changes in policies, rates of benefits or similar areas for at least one year, except in accordance with the law.
- Coventry immediately implement procedures to ensure timely and accurate with the Insurance Department on complaints, the filing of political forms and similar processes.
- Coventry implement procedures to ensure all information is filed in a timely manner.
- Coventry maintains an office in Wichita dedicated to services for PHS field until 2011.
Coventry serves over 5 million people nationwide.
Michael Murphy, president and CEO of Coventry Health Care of Kansas, will become CEO of PHS. Brad Clothier, chief operating officer of PHS, will remain in that position.
Coventry of Kansas serves all of Kansas and the western half of Missouri. It provides about 33,000 people who use the Wichita market health care, "said Murphy.
PHS is the largest commercial insurer in the market Wichita. He has more than 100,000 members of the group of commercial risk and 20,000 commercial self-funded members in Kansas.
