Wauwatosa-based Froedtert Health plans to take partial ownership of Menasha-based health insurance plan Network Health, which is currently owned by Milwaukee-based Ministry Health Care.
Ministry has been the sole owner of Network Health since 2012. The health systems plan to co-own the plan through the new agreement.
Network Health, founded in 1982, offers commercial and Medicare Advantage plans for employers and individuals in 17 counties in northeastern Wisconsin. It has 130,000 members and is ranked among the top 20 percent of U.S. Health plans by Consumer Reports.
Froedtert and Ministry are already linked through the Brookfield-based Integrated Health Network of Wisconsin (formerly Quality Health Solutions), which is a clinically integrated alliance of independent health systems, hospitals and physicians formed in 2005. It includes Froedtert Health, the Medical College of Wisconsin, Columbia St. Mary’s, Wheaton Franciscan Healthcare, Agnesian HealthCare and Ministry Health Care.
The ownership agreement between the health systems has not yet been finalized, and they still need regulatory approval, but they are aiming for a 50-50 ownership share, said Kathleen Sieja, a spokesperson for Froedtert. The amount paid by Froedtert has not been disclosed.
“The anticipated transaction will position Froedtert Health and Ministry to jointly expand the Network Health service area into southeastern Wisconsin, with Network Health offering Integrated Health Network as its provider network in southeastern Wisconsin,” said Nick Desien, president and chief executive officer of Ministry Health Care. “We believe this partnership and expansion of Network Health will accelerate the growth of population health management programs in the communities we serve. We welcome the prospect of expanding our relationship and look forward to our continued discussions.”
“This is a natural partnership that flows from the existing Integrated Health Network of Wisconsin relationship between Ministry and Froedtert Health,” said Catherine Jacobson, president and CEO of Froedtert Health and chair of Integrated Health Network. “With clinical integration, a proven care coordination model and IT connectivity solidly in place, IHN has the infrastructure to contract directly with all payers and insurers on behalf of its members.”
