YNHHS News Releases

Released May 7, 1997

Alliance Set for Hospitals and University;
Managed Care Initiative Announced

CT's Largest Provider-Owned Network to Result

For more information, contact:
Bill Gombeski, Yale New Haven Health, 203-688-2488
Pete Mobilia, Saint Francis Hospital
and Medical Center, 860-714-4511
Marcia Ryan, Yale University, 203-432-1311

New Haven, CT -- Yale New Haven Health, Yale University and Saint Francis Hospital and Medical Center today announced the proposed merger of their managed care plans, HealthChoice of Connecticut Inc. and Yale Preferred Health, creating the largest provider-owned health plan in Connecticut.

The mission of the merged companies will be to provide comprehensive and competitively priced health benefits to consumers throughout the state of Connecticut.

The announcement was made jointly by Joseph A. Zaccagnino, president and CEO of Yale New Haven Health; Richard C. Levin, president of Yale University; and David D'Eramo, PhD, president and CEO of Saint Francis Hospital and Medical Center. Plan officials said that the synergy created by the merger will effectively position the new organization in the rapidly developing managed care marketplace and permit it to begin offering a commercial health maintenance organization (HMO) product.

Yale Preferred Health, a licensed HMO founded in April 1995, was jointly sponsored by Yale New Haven Health and Yale University. Based in North Haven, it operates Preferred One, a Medicaid managed care plan with over 15,000 members, primarily in New Haven County.

HealthChoice, a preferred provider organization (PPO) based in Farmington, was established in September 1990 by the Camillus Corporation, an affiliate of Saint Francis. Since November 1994, Yale New Haven Health has owned a 50 percent share of HealthChoice. The PPO currently covers more than 180,000 lives statewide and includes more than 6,000 physicians and ancillary providers and 29 hospitals throughout Connecticut. HealthChoice also manages a partial risk health plan for Medicaid recipients.

John W. Rohfritch, president and chief executive officer of HealthChoice, will preside over the new merged corporation. "Combining the resources of our two organizations makes good business sense. It will allow us to more efficiently deliver high quality care to Connecticut residents." Rohfritch indicated that individuals now enrolled in plans covered by Yale Preferred Health and HealthChoice will continue to see their current health care providers and receive the same coverage under the merged entity. The company will retain service center locations in Farmington and the New Haven area and will initially operate under the HealthChoice corporate name.

The corporation will be provider sponsored and operated and will include an extensive network of institutions and physicians dedicated to delivering wellness, health maintenance and medical management services with the focus on high quality.

The proposed merger is subject to regulatory approval by the state Department of Insurance and the state Department of Social Services.

Note: Yale New Haven Health is the parent corporation of Yale-New Haven Hospital.