Portland, Oregon-based Cambia Health Solutions, the parent of Regence, a member of the Blue Cross Blue Shield Association, and Durham, North Carolina-based Blue Cross and Blue Shield of North Carolina have announced that the are creating a “strategic affiliation” that will allow for nationwide coverage.
According to their press release, “Cambia and Blue Cross NC will enter into a long-term management services agreement, adopting best-in-class services from both companies. Specifically, the companies have agreed to share management, administrative, operational, and other corporate services, under the Cambia Health Solutions name.” According to Dr. Patrick Conway who will serve as the CEO of the new affiliation, “By sharing resources, innovations, and best-in-class services we can fundamentally transform the way individuals and families experience the health care system.
“Cambia’s Board of Directors will be made up of 10 members from Blue Cross NC’s current Board of Trustees and nine members from Cambia’s current Board of Directors. Blue Cross NC will retain its own separate Board of Trustees and name. Blue Cross NC and Cambia will retain their separate, tax-paying, not-for-profit corporate structures.” The combined entity will have six million enrollees and an estimated $16 billion in annual revenues.
Unfortunately, this type of long-term management where the combined entities operate under a common management team and share key management, administrative, operational, and other corporate services often results in some degree of restructuring involving employee layoffs to eliminate duplicative functions and redundant employees.
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