Harvard Pilgrim Health Care & Tufts Exploring a Merge of the Two Non Profit Health Plans
Posted Jan 26 2011 12:33am
The press release stated both have signed a letter of understanding to explore the benefits of merging and this is not a final decisions as algorithms will need to be run to make sure the 2 are compatible and that everything else jives along the way. BD
About 6 months ago Harvard Pilgrim Health Care, and Tufts Health Plan confirmed that the Justice Department had asked them to turn over documents relating to their dealings with Partners Healthcare so this investigation might add more fuel to a possible merger.
BOSTON--( BUSINESS WIRE )--Harvard Pilgrim Health Care and Tufts Health Plan today announced they have signed a non-binding Memorandum of Understanding (“MOU”) to explore the benefits of merging their nonprofit health plans. This is the first step in a long process of due diligence for both organizations to internally review the potential for a transaction before reaching a final merger decision, which is anticipated sometime in the next several months. If the companies decide on the terms of a merger, documented by a definitive agreement, a regulatory review process would then take place.