Tufts Health Plan and Harvard Pilgrim merger discontinued
In a press release that came as somewhat of a surprise,Tufts Health Plan and Harvard Pilgrim have discontinued discussions of a merger. Less than two months after it was reported that the two firms were in merger discussions, it appears that they found too many obstacles to overcome and that efficiencies would not be realized. In a separate statement released by Tufts Health plan today, James Roosevelt, president and CEO stated: “We made the thoughtful determination that while we are in the same business, our operations are very different and, in many important aspects, not fully compatible without significant changes to existing processes and applications”.
This is most likely not the last we will hear of merger discussions in this space. As the reality of health reform compliance hits, many regional and national firms will have to keep all options on the table.
About the Author
Christopher Nadeau is a Principal at William Gallagher Associates (WGA) and head of the Employee Benefits Group. Mr. Nadeau counsels his department to develop and redesign employee benefits programs to match the corporate philosophy, long-term needs and objectives of their clients. He is also an industry leader on Healthcare reform and the cost impact and administrative burden on employers.