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Article: Major out-of-hospital services merge Is Blue Cross marriage with Bay State Health for better or for worse?
- Article from:
- The Boston Globe (Boston, MA)
- Article date:
- June 18, 1992
- Author:
CopyrightCopyright 1992 The Boston Globe. Provided by ProQuest LLC. (Hide copyright information)
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A day after announcing plans to acquire Bay State Health Care,
Blue Cross and Blue Shield of Massachusetts faces a critical
question: Is it swallowing a pill that is going to make it healthier
or sicker?
Bay State is a company with severe problems. Blue Cross, on the
other hand, has had little success expanding beyond its traditional
health insurance base into managed care plans like health maintenance
organizations.
"I think it's fair to ask: Does Blue Cross have the cash and the
management resources to take on this responsibility?" said Stephen
Caulfield, a managing director at William M. Mercer, a benefits
consulting firm.
Blue Cross agreed Tuesday to buy the assets and liabilities of Bay ...