THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, August 21, 1996 TAG: 9608210993
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: STAFF AND WIRE REPORT
DATELINE: CLEVELAND LENGTH: 35 lines
Blue Cross and Blue Shield of Ohio policyholders on Tuesday approved a merger with Columbia/HCA Healthcare Corp., the nation's biggest for-profit hospital chain.
The state's largest health insurer spent five months trying to win policyholder support for the $299.5 million deal by running newspaper and television advertisements.
The state insurance department, which must approve the deal, and the attorney general are reviewing the agreement. The Federal Trade Commission and the Department of Justice also are expected to review the deal.
The proposed merger represents the first significant foray into the insurance business by Nashville, Tenn.-based Columbia.
Under the deal, Blue Cross and Blue Shield would continue to operate as a smaller entity, providing some insurance and guaranting all policies written by the new company.
Blue Cross has about 1.5 million subscribers, mostly in northern Ohio. Columbia operates 347 hospitals, 133 outpatient surgery centers and other medical facilities in 38 states, England and Switzerland.
In Virginia, Richmond-based Trigon Blue Cross Blue Shield has asked its policyholders to approve a plan for converting Trigon from a company owned by policyholders to an investor-owned company. Trigon, the largest health care provider in the state, also needs the approval of Virginia regulators.
The company's policyholders are due to vote on the proposed conversion at a special meeting Sept. 6 in Richmond. Virginia's State Corporation Commission is scheduled to begin a public hearing Sept. 9 on the conversion plan's fairness to policyholders. by CNB