Englewood, Colo.-based Catholic Health Initiatives has decided to get out of the health-insurance business.
CHI’s insurance subsidiary, QualChoice Health, formerly known as Prominence Health, has been offering Medicare Advantage and commercial insurance products to members in six states. But, Becker’s Hospital Review reports, the insurance business had a operating loss of almost $97 million in the first nine months of fiscal 2016, which ended March 31. In the like year-earlier period, QualChoice had a nearly $19 million operating loss.
CHI is one of many systems that have launched health plans in recent years, especially since the Affordable Care Act went into effect, but with often disheartening results.
McKinsey & Co. found that of the 89 hospital-system insurance plans, more than 40 had negative margins in some or all of the past three years. To read the Becker’s story on this, please hit this link.
