Leawood-based health care company Nueterra announced Wednesday its acquisition of third-party insurance provider Benefit Management Inc. of Great Bend. However, officials with both firms said the deal, which will become final May 1, will not impact BMI’s long ties to the community.
“Nothing is changing,” said Chad Somers, BMI president and chief executive officer. “This is very much a positive move.”
The acquisition was sought shortly after Nueterra announced it had shifted much of its focus to facilitating programs and services targeting the consumer population. Talks have been underway for about six months.
BMI has long been a Midwest leader in the development and administration of custom health insurance benefit solutions, Somers said. BMI will be instrumental in Nueterra’s new pay-for-value strategy targeting employers and U.S.-based payers.
“Both entities saw opportunities,” Somers said.
Nueterra specializes in developing equity partnerships with health systems, governments, hospitals and physicians. As healthcare evolves, this acquisition is a chance to connect consumers with providers, officials said.
“Right now, Nueterra is drawing physicians and facilities together, uniting them clinically and financially into integrated networks across the country,” said Dan Tasset, Nueterra chairman. “As we do that, we’ll be in a unique position to offer bundled payments for medical conditions for commercial populations.”
Both Nueterra and BMI see the healthcare industry in developing pay for value models. Bundled payments for medical conditions are one way for self-funded plans to begin incorporating value-based reimbursement into provider network strategies.
BMI will play a strategic role in this new system.
“What’s critically important in healthcare is to align values and incentives that make sense to both providers and payors,” said Steve Garver, Nueterra Innovations chief operating officer. “With BMI, we’ll create new offerings that align incentives for the health care value chain. Ultimately, we want to bring high quality healthcare services with lower costs for everyone.”
The current leadership team at BMI will remain in place and will continue to guide the organization under the Nueterra Innovations Group. BMI will retain its location, employees and structure, and will continue to provide health plan administration for their clients across the nation- while also offering employers the option of utilizing Nueterra’s value-based reimbursement models.
Somers said BMI will also continue to be active in the community.
“BMI has a long history of innovation and consistent growth,” Somers said. “We expect to expedite this growth as part of Nueterra. This move is very good for our self-funded health plan employers and broker partners.” Somers expects the acquisition to create new jobs and opportunities for its Great Bend team.
BMI specializes in payment administration, while Nueterra focuses provider networks. The companies’ combined expertise will bring new innovative products to market sooner, benefitting all stakeholders - payors, providers and patients, Garver said.
Nueterra is the largest privately-held organization in the U.S. specializing in developing equity partnerships with health systems, governments, hospitals and physicians. It owns and manages focused community hospitals, surgical hospitals, ambulatory surgery centers, pathology labs, and physical therapy centers across more than 28 U.S. states.
BMI provides customized health benefits administration programs to partially self-insured companies and association plans nationwide. BMI has grown to be one of the Midwest’s leading third-party administrators.