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Launched in 2014 by journalist Sean Baker, Med City Beat is an independent news source covering government, business and culture in Rochester, Minnesota.

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Medica to acquire Mayo Clinic Health Solutions

Medica to acquire Mayo Clinic Health Solutions

Minnetonka-based insurer Medica has come to terms on a deal with Mayo Clinic to acquire its Health Solutions division (MMSI), the two organizations announced Thursday.

Rochester-based MMSI is a health benefits management company and licensed third party administrator that provides plan administration services and health care products to 260,000 members through 28 customers, according to a news release.

Leaders from both Mayo and Medica say the agreement will provide opportunities to improve access for patients with serious and complex medical conditions.

“Complementing each organization’s strengths is important in this decision,” said Kedrick Adkins, Mayo's chief financial officer. “This new arrangement offers technologies and opportunities to explore that can benefit patients and clients.”

Financial details of the arrangement were not announced. The change will take effect by the end of 2017.

Citing internal communication at Mayo, KTTC-TV reports about 200 staff members will be affected by the acquisition. The clinic said it will provide employees with other employment options to consider.

Mayo is also reportedly assuring employees that the transition will not alter the contents of their plans.

In addition to Minnesota, Medica provides health coverage in Iowa, Kansas, Nebraska, North Dakota, South Dakota and Wisconsin. It laid off 250 employees earlier this year after exiting a Minnesota contract to manage care in public health insurance programs.

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