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Blue Cross and Blue Shield of North Carolina has agreed to acquire all North Carolina-based locations of FastMed, a company that provides telehealth, urgent and primary care, occupational health and prevention services.
In total, Blue Cross NC will acquire 55 FestMed locations, with the companies saying they would work together “to strengthen health care capacity in the state,” with the goal of improving access and affordability.
The companies said they would invest in ways to improve the patient experience at FastMed sites.
WHAT IS THE IMPACT
Like other healthcare providers, FastMed has felt the impact of provider shortages amplified by the COVID-19 pandemic: between 2016 and 2021, North Carolina lost approximately 9% of its workforce in direct care, the companies said.
As the healthcare industry continues to rapidly evolve, new partnerships and affiliations aimed at improving patient health and reducing healthcare costs are beginning to proliferate. Blue Cross NC’s short-term plans for FastMed would include returning to pre-pandemic service operations.
“With approximately half of FastMed clinics located in rural areas of our state with limited access to health care resources, this is an important investment in North Carolina,” said Tunde Sotunde, CEO of Blue CrossNC. “This pending acquisition would strengthen critical access points to care across the state and benefit everyone, not just NC Blue Cross members. As a North Carolina-based, mission-driven, fully taxed, nonprofit company, we serve all North Carolinians. »
The current acquisition is expected to be finalized in early 2024.
Blue Cross NC, which has been a non-controlling minority investor in FastMed since 2012, has agreed to acquire only FastMed’s North Carolina locations. FastMed would operate independently of Blue Cross NC, a fully taxed nonprofit corporation headquartered in Durham, North Carolina.
FastMed would continue to serve all North Carolinians and those visiting the state, not just NC Blue Cross members. Those who are members can search for in-network care facilities through the Blue Connect portal.
Completion of this pending acquisition is subject to the satisfaction of customary closing conditions.
THE BIGGEST TREND
Approximately 85% of current Blue Cross NC customers with individual ACA plans are eligible for subsidies for their 2024 plans. Subsidies vary by plan and household income. The federal American Rescue Plan Act extended these subsidies to more people, lowering premiums to no more than 8.5 percent of customers’ household income. In 2022, these expanded subsidies were extended for three years through the federal Inflation Reduction Act.
Blue Cross NC would continue to offer renewal of what are considered “transition plans” in 2024, both for individuals and small groups. These are plans purchased between March 2010, when the ACA was signed, and October 2013, when the regulations took effect. Transition plans do not meet ACA requirements but are permitted under federal law. Packages cannot be sold to new customers.
In 2022, Blue Cross NC played a role in the mental health space, partnering with Headway, a company that works with insurers to provide behavioral health care. This collaboration aimed to address what the company considers a serious problem: the shortage of mental health professionals in the state.
The collaboration came as Blue Cross NC was invest more than 2 million dollars to support 11 community organizations working to improve access to behavioral health services. The initiative aims to improve access in rural and marginalized communities and areas of the state designated as health professional shortage areas.
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com
