Catholic Health Initiatives launches insurance subsidiary

The Englewood, Colorado-based mega hospital and healthcare non-profit network Catholic Health Initiatives is continuing to expand vertically as well as horizontally with its latest move to create a wholly-owned subsidiary called Prominence Health that will oversee its commercial and Medicare Advantage health-insurance plans, networks of care and related products.

Along with operating hundreds of healthcare facilities in 18 states — including 93 hospitals, four of which area academic medical centers and teaching hospitals, and 24 of which are critical-access hospitals — Catholic Health Initiatives also runs community health centers, a home care company and accredited nursing colleges.

In 2012, it acquired a majority interest in Soundpath Health, a Medicare Advantage plan in Tacoma, Washington, and earlier this year, it purchased QualChoice, a commercial health plan based in Little Rock, Arkansas.

The company said additional future growth will be driven by strategic acquisitions in areas where Catholic Health Initiatives has healthcare facilities and through third-party administration services and Medicare Advantage plans in new markets, including Kentucky, Nebraska, Ohio and Tennessee.

An increasing number of providers are finding that as healthcare reform makes them take on many of the risks that insurers have traditionally borne, they might as well become the health plan provider. Catholic Health Initiatives creation of Prominence Health underscores this trend in a big way.

“Prominence Health will significantly advance CHI’s ability to excel in a pay-for-value environment,” stated Juan Serrano, chief executive officer of Prominence and senior vice president of payer strategy and operations for Catholic Health Initiatives in a press release. “Through Prominence, CHI has developed a catalyst to position us as a broadly integrated health system that enables exceptional health services and superior value for the communities we serve.”

The move also allow Catholic Health Initiatives to go direct to large employers seeking an affordable and high quality health plan option for its employees that will incorporate wellness and preventive care initiatives.