Cleveland-based Medical Mutual has revealed its intention to acquire Paramount Health, a Northwest Ohio-based health insurance company owned by ProMedica. Paramount, headquartered in Toledo, specializes in offering Medicare Advantage, Individual ACA, commercial group, and short-term insurance plans, primarily servicing Ohio and Michigan.
The transaction, subject to regulatory approval, is anticipated to be finalized by May 1. Steve Glass, President and CEO of Medical Mutual, emphasized the shared vision between the two companies in their commitment to aiding individuals in living healthier lives. Glass expressed confidence in strengthening Medical Mutual’s role as a trusted healthcare navigator in Ohio through the addition of Paramount, renowned for its local care and excellent service.
As a wholly owned subsidiary of Medical Mutual, Paramount will maintain its health plans with no immediate changes for existing members. Transition plans are in progress, with the integration of Paramount employees into the Medical Mutual organization expected upon the completion of the transaction.
Medical Mutual will continue providing its branded products and services in Northwest Ohio, offering access to its provider networks, including the ProMedica health system. The incorporation of ProMedica’s primary care providers, specialists, hospitals, and outpatient care clinics into Medical Mutual’s Medicare Advantage and Individual ACA networks underscores the comprehensive reach of the alliance.
In the larger context, mergers and acquisitions in the healthcare sector are poised for a rebound in 2024 after a dip in activity observed in 2023. However, regulatory scrutiny from the Federal Trade Commission and the Department of Justice could pose challenges to dealmaking.
ProMedica’s President and CEO, Arturo Polizzi, highlighted the strategic decision to transition ownership of Paramount health insurance to align with the health system’s core operations. Polizzi expressed confidence in Medical Mutual as a fitting successor, emphasizing the company’s history in providing various health insurance plans and the expectation that Paramount employees will seamlessly continue delivering exceptional service to members and employers under Medical Mutual’s ownership.
