Columbia United Providers acquisition
The Office of the Insurance Commissioner received a request from PeaceHealth for a proposed acquisition of control of Columbia United Providers (CUP).
PeaceHealth and Southwest Washington Health Systems are both not-for-profit corporations. PeaceHealth is now proposing to acquire control of CUP through a transfer of common stock ownership from Southwest Washington Health Systems. Southwest Washington Health Systems currently owns 90 percent of CUP’s common stock.
History of the process
We received the original application for acquisition of control in September 2010. As a result of PeaceHealth’s request, the proceeding was terminated on March 10, 2011. We received the second application for acquisition of control in October 2012.
What we look at
In all proposed sales, the companies must file an application (Form A) that details:
- Financial information for both companies;
- Who will operate the health carrier at the highest levels;
- Their business plan for the health carrier; and
- How the market competition would be impacted.
Under state law, the commissioner must approve the deal unless:
- It would substantially lessen competition or create a monopoly;
- The buyer’s plans are unfair and unreasonable to the policyholders of the health carrier;
- The buyer’s isn’t competent, honest, or financially sound enough to run a health carrier; or
- It is in some way “hazardous or prejudicial to the insurance-buying public”.