A brand new contract with Sparrow Health in Lansing fills a notable gap in Priority Health’s care community throughout the Lower Peninsula.

The deal — which comes days after, however is unrelated to Sparrow Health’s proposed merger into University of Michigan Health — begins Jan. 1 and covers all of Priority Health’s traces of enterprise: group business, Medicare, Medicaid and particular person protection. All of Sparrow Health’s amenities and 500 affiliated physicians will change into in-network suppliers of Priority Health, which beforehand solely had a Medicare contract with the well being system for in-network protection.

Mike Jasperson, senior vp at Priority Health. COURTESY PHOTO

“We are proud of the strong provider network Priority Health has always maintained,” stated Mike Jasperson, senior vp of supplier community and Health plan operations. “This expanded network contract strengthens access even more for our members and employers in the Lansing area.”

Sparrow Health System owns and operates six hospitals in Ionia, Ingham, Clinton, Eaton and Montcalm counties. The well being system final week introduced a deal to merge into University of Michigan Health that would shut within the first half of 2023, pending regulatory approval.

The contract with Sparrow Health will help to broaden Priority Health’s presence and skill to compete within the Lansing space, the place the 1.2-million member Corewell Health-owned well being plan has had a contract with McLaren Health since January 2017 to first achieve entry into the market.

As of 2021, Blue Cross Shield of Michigan held a dominant 74-percent market share for well being protection within the Lansing metropolitan statistical space throughout all plan varieties, in accordance with an American Medical Association annual report on well being plan market shares within the U.S.

The Sparrow Health-owned Physicians Health Plan held a 17-percent market within the Lansing space.

For PPO protection, Blue Cross Blue Shield had 90 % of the Lansing-area market, to CVS Health’s 3 %, in accordance with the AMA that once more ranked Michigan because the second-least aggressive state within the nation for well being protection. 

Statewide as of January 2021, Blue Cross Blue Shield of Michigan held a 68-percent market share throughout all coverage varieties to Priority Health’s 12 %.