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FOR IMMEDIATE RELEASE:
CLEVELAND, Ohio/June 27, 2000
FOR MORE INFORMATION:
Kathy Lynch - 216/436-5529 Cleveland-based Ohio Health Choice, the state's oldest preferred provider organization (PPO) and also one of its largest, has purchased Prefer One, the PPO program of Central Benefits Mutual Insurance Company, Columbus, Ohio. Effective June 8, 2000, the acquisition will expand Ohio Health Choice membership by more than 20,000 covered lives for network services and 60,000 covered lives for medical management services. Prior to this purchase, Ohio Health Choice represented approximately 500,000 members across Ohio, including 50,000 covered lives in the greater Columbus area. "Ohio Health Choice has set some ambitious growth goals for 2000, and this transaction is among the first steps in helping us achieve them," said Ohio Health Choice Executive Vice President and Chief Operating Officer Joan M. Mason. "With the strategic acquisition of Prefer One, Central Benefits, a 63-year veteran in the employee benefits arena, becomes one of our largest and most prestigious customers. By expanding the presence of Ohio Health Choice in the greater Columbus area and across the state, we can increase our negotiating power, resulting in deeper discounts and larger networks for our members," said Ms. Mason. "As Central Benefits continues to focus on our third party administration, ShareholderTM, Life and Medicare Supplement lines of business, we continue to build key business partnerships that will increase our level of service to our customers in the most cost-efficient manner," said Central Benefits Senior Vice President William C. Mechling. "In Ohio Health Choice, with its extensive PPO network experience and its proven track record of excellent service, we have found such a relationship. We are especially pleased with this agreement with Ohio Health Choice that allows our customers to continue to access the Prefer One network and retain their existing benefits." Mr. Mechling said. Prefer One will remain a separate product of Ohio Health Choice. The transition will be seamless to both healthcare providers and members covered by the plan. Patients will continue to submit claims as directed on their current ID card. The Prefer One PPO network was established in 1987 and includes 17,000 providers and 118 hospitals statewide. According to Ms. Mason, Ohio Health Choice has exceeded its goals in every area for first quarter 2000, including the ongoing recredentialing and recontracting of all Ohio Health Choice payors and physicians. In 1999, Ohio Health Choice completed a comprehensive Information Services upgrade that has increased productivity more than 14 percent, resulting in reduced turnaround time for claims to a single eight-hour business day. Implementation of Electronic Data Interchange (EDI) for claims processing will begin this summer. In addition, Ohio Health Choice was recently recognized for excellence in managed care by achieving Health Utilization Management Accreditation from URAC, also known as the American Accreditation HealthCare Commission. Established in 1982, Ohio Health Choice creates and maintains statewide networks of more than 170 hospitals and 22,000 physicians, along with claims repricing and comprehensive medical management programs. Ohio Health Choice is a wholly owned subsidiary of UHHS/CSAHS-Cuyahoga, Inc., a 50/50 tax-exempt corporation formed between the Sisters of Charity of St. Augustine Health System (CSA Health System) and University Hospitals Health System (UHHS) in June, 1999.
Prefer One was the PPO program of Columbus-based Central Benefits Mutual Insurance Company. Central Benefits was founded in 1938 as Columbus Hospital Service Association. Licensed in 26 states, the company and its subsidiaries provide comprehensive group insurance administrative services and group life insurance coverages, as well as individual Medicare Supplement Insurance products.
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