In another example of hospital systems and insurers overlapping to address  new reimbursement and other issues,  Fairview Health Services, a large provider network, and the UCare health-insurance company will merge. Fairview will change its name to M Health in July.

UCare is Minnesota’s fourth-largest health-insurance plan, covering about 113,000 people.

Fairview Health Services has long been in the insurance businesses; in January it acquired sole ownership of PreferredOne.

UCare will become a  subsidiary of Fairview.

“This proposed combination mirrors a growing national trend of payer/provider partnerships and has the potential to transform how health care is delivered and financed in Minnesota,” David Murphy, Fairview’s interim CEO said. “Deploying the synergies and shared visions of these two trusted Minnesota healthcare organizations will enable us to pilot innovative ways to improve patient outcomes, simplify the healthcare experience and reduce the cost of care.”