GRAND RAPIDS — Priority Health said Monday that it closed on the acquisition of Total Health Care Inc., a Detroit-based HMO.
Under the deal, the two health plans will operate separately and maintain their brand names. Priority Health will continue to serve enrollees statewide, and Total Health Care will focus operations in Detroit and surrounding communities.
“I can think of no better way to start the new decade than by officially welcoming Total Health Care to the Priority Health family,” Priority Health President and CEO Joan Budden said in a statement. “This partnership was a natural coming together for two organizations that share a strong commitment for providing members with high quality care and bettering the communities we serve. We are excited to have achieved this historic milestone and look forward to working with the Total Health Care team in the new year.”
After completing the deal, the two health plans will share best practices for serving the Medicaid market in Michigan.
Terms of the deal were undisclosed, although the Grand Rapids-based Priority Health has begun to establish a $25 million foundation to support health initiatives in the Detroit area.
Between its two health plans, Total Health Care as of Sept. 30 had more than 91,000 members in Wayne, Oakland, Macomb, Genesee and portions of Monroe County who were enrolled in individual, group and Medicaid HMO policies.
Priority Health has more than 800,000 members statewide enrolled in group, individual, Medicare and Medicare policies.