By Matthew Keck —
Evolent Health has purchased a 70 percent stake in Passport Health Plan from the University of Louisville. U of L will retain a 19.2 percent stake in Passport, but will receive $44.7 million from Evolent.
“The University of Louisville helped create Passport Health Plan in 1997, paving the way for what has become a national model for managed care,” said President Neeli Bendapudi in the release. “Now, we are proud to partner with Evolent Health to begin a new chapter that will continue to spark innovation in the delivery of care.”
This deal will help with U of L’s funding issues and budget problems at ULP and the School of Medicine. Bendapudi stated in her email that it will help alleviate financial pressures straining the Health Science Centers.
Bendapudi also said this deal has short-term and long-term benefits for U of L and the Louisville community. Some short-term benefits included no disruption of Passport’s services and improving U of L’s financial stability. Long-term goals included commitment to the Louisville community and prioritizing the West End.
“For the past 20 years, Passport has been proud to work with the Commonwealth, our provider partners and other valued supporters to deliver a quality health plan that promotes our members’ best interests and health outcomes,” Passport Health Plan Chief Executive Officer Mark Carter said in the release. “Evolent and Passport are dedicated to finding ways to bring the West Louisville Health and Wellbeing Campus to life, as we believe it will significantly positively impact the health of the community.”
With the approval of this deal, Evolent will contribute $70 million of their 70 percent share in Passport. Evolent will be the sixth partner added to the operations of Passport.
As part of the transaction, Evolent has agreed to expand its Management Services Agreement with Passport. They will be taking on new responsibilities of the health plan including administrative, clinical and financial operations and oversight.
Passport services more than 300,000 customers in Kentucky and they are already partners with Evolent. They are the main provider of Medicaid benefits in the Louisville area.
This deal was announced Wednesday but has yet to receive approval from state and federal regulatory agencies.
Photo Courtesy of Passport Health Plan