Despite industry speculation that No. 2 health insurer WellPoint named former health system executive Joe Swedish its CEO last month as a move to begin a flurry of hospital acquisitions, the former head of Livonia, Mich.-based Trinity Health quelled rumors saying the company would be looking at new contract options with providers, not buying them up.
"To be clear, I do not currently see vertical integration as a likely path for WellPoint," Mr. Swedish said in a conference call, according to the Indianapolis Business Journal. "The models are so divergent that it just does not seem to be the best use of capital."
WellPoint purchased Cerritos, Calif.-based CareMore, a Medicare health plan and physician group, for $800 million in 2011, and has since grown it to 25 clinics.
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"To be clear, I do not currently see vertical integration as a likely path for WellPoint," Mr. Swedish said in a conference call, according to the Indianapolis Business Journal. "The models are so divergent that it just does not seem to be the best use of capital."
WellPoint purchased Cerritos, Calif.-based CareMore, a Medicare health plan and physician group, for $800 million in 2011, and has since grown it to 25 clinics.
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