Toledo, Ohio-based ProMedica is selling its insurance subsidiary, Paramount Health, to Medical Mutual of Ohio.
According to a Jan. 29 news release, Cleveland-based Medical Mutual expects the sale to close by May 1, pending regulatory approval.
"As ProMedica has further sharpened its focus on core health system operations, we embarked on a thoughtful process to transition ownership of our Paramount health insurance business," Arturo Polizzi, president and CEO of ProMedica, said in the news release.
ProMedica sold its home health, palliative and hospice business in November.
Paramount Health will become a fully-owned subsidiary of Medical Mutual, and there will be no immediate change to how members do business with either company, according to the release.
Paramount Health has more than 77,000 members in Medicare Advantage, commercial, individual and short-term plans. It also has 308,000 dental plan members. The dental plan is not a part of the transaction.
Medical Mutual has 1.2 million members in commercial, Medicare Advantage, Medigap and individual plans.
"Our shared goal with Medical Mutual is to minimize disruption to our health insurance members. The health insurance business lines are expected to continue operating using the Paramount name as part of Medical Mutual," a ProMedica spokesperson said in a statement shared with Becker's.
Medical Mutual plans to hire Paramount employees after the sale closes and has committed to maintaining some of the company's downtown Toledo offices, the spokesperson said.
"While there are still many decisions to be made during the ownership transition phase, we expect the majority of our health insurance employees to transition to Medical Mutual," the spokesperson said.
All of ProMedica's primary care, specialist, outpatient clinics and hospitals will be in-network for Medical Mutual members as part of the acquisition, according to the news release.
"This acquisition aligns two companies that share a lot more than just being headquartered in Ohio. We share a common vision — to help people live healthier," Steve Glass, Medical Mutual's president and CEO, said in the release.