Banking & Finance, Health Care, and Human Resources

Health insurers plan merger

August 29, 2019
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Priority Health doctor and patient
Priority Health says its network of providers features 95 percent of practicing physicians available in Michigan. Photo via fb.com

A local health insurer is planning a “merger” with another insurer.

Grand Rapids-based Priority Health, part of Spectrum Health, and Detroit-based Total Health Care are planning to merge, as well as establish a $25 million foundation aiming to improve health in metro Detroit communities.

The transaction is expected to be complete in early 2020, following approval by Total Health Care members and state officials.

The merger will provide “improved care and access for current and future members,” Priority Health said. Both organizations will maintain current operations, locations, leadership and staff.

Randy Narowitz, CEO of Total Health Care, said the merger gives his organization access to additional resources and stability to continue serving clients “at a price they can afford.”

“I have a great deal of respect for the leadership team at Total Health Care and the business that they have built,” said Joan Budden, president and CEO, Priority Health. “Throughout my long career in the region and as a Detroit native, I’ve seen first-hand their passion for serving their members and their commitment to the Detroit community."

Priority Health

Founded over 30 years ago, Priority Health served more than 1 million members throughout Michigan in 2019 and has more than 1,200 employees.

The insurer has had a presence in southeast Michigan for over a decade and serves members throughout metro Detroit from the company’s Southfield office. Its membership in metro Detroit has grown 63% over the past five years.

In 2018, Priority Health provided more than $138 million in “community benefit” across the state, including partnerships with more than 30 Detroit-area organizations in 2018 to support community, charitable and business programming.

Total Health Care

Total Health Care, which was first incorporated as Model Neighborhood Total Health Care in 1973, started as part of the federally subsidized model neighborhood programs under former U.S. President Lyndon Johnson.

Today, the organization serves members throughout Wayne, Oakland, Macomb, Genesee and Monroe counties.

Its network consists of more than 2,560 health care centers, 2,050 primary care physicians and 4,500 specialists.

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