Trinity Health more than doubled its operating income in the recently ended quarter by selling its stake in a managed care organization that offers Medicaid and Medicare plans in Pennsylvania.
The Livonia, Michigan health care system posted a $ 127 million profit on the sale of Highmark Health’s Gateway Health Plan. in the quarter ending September 30… The non-profit operating income excluding sales was $ 106 million, which equates to an operating margin of 2.1%. Taking into account the proceeds from the sale, it amounted to 4.7%. Trinity Health’s operating margin for the year-ago quarter was 2.4%.
Following the acquisition, Highmark Health has rebranded the insurance company and will sell Blue Cross and Blue Shield under the Highmark Wholecare name.
The deal, which closed on Aug.31, also generated $ 62.5 million in dividend payments and nearly $ 322 million in revenue, according to Trinity Health. financial report… The company did not respond to a request for comment.
Prior to the deal, Highmark Health and Trinity Health each owned 50% of the Gateway Health Plan, which has over 355,000 members. The insurance company offers Medicaid plans in 40 Pennsylvania counties and Medicare plans in 58 Pennsylvania counties. Highmark Health and Mercy Health, a subsidiary of Trinity Health, launched the Gateway Health Plan in 1992.
“With this agreement, we are now able to fully leverage the innovative Highmark Living Health model to provide a more coordinated, personalized and technology-based experience for our members,” said Karen Hanlon, Chief Operating Officer of Highmark Health and interim CEO of Highmark Wholecare. press release on closing the deal…
Trinity Health, a Catholic system with nearly 90 hospitals, generated just under $ 5 billion in revenue for the quarter ended September 30, up from $ 4.8 billion in 2020, up 3.7% from the same period last year. of the year. In the recently ended quarter, expenses were $ 4.9 billion, up 3.9% from the same period last year.