Blue Cross and Blue Shield of Minnesota and North Memorial Health are unwinding their three-year-old partnership to jointly operate 25 clinics in the Twin Cities.
Effective May 31, Robbinsdale-based North Memorial will regain a 49% ownership stake in the facilities, currently held by the parent company of Eagan-based Blue Cross.
Financial terms were not disclosed.
When it was announced in 2019, the partnership — which operated as Blaze Health LLC — followed the example of other independent Blue Cross health plans moving into the clinic business. The relationship reflected a broader push for joint ventures between health care providers and insurers.
"Blaze Health was born and launched from a pre-pandemic perspective," said Dr. Kevin Croston, chief executive at North Memorial Health, in a news release. "Just a few months later, the industry changed in ways that no one could have anticipated. I truly appreciate the collaboration with Blue Cross, both in our response to the pandemic and the work that went into the JV."
As for Blue Cross, its new strategic plan "is built on the growth and expansion of value-based care initiatives with multiple care systems and providers throughout our network," said Dana Erickson, Blue Cross chief executive, in a statement.
The joint venture launched in January 2020. Patients will not experience disruptions in their medical care or health insurance benefits due to the change, Blue Cross and North Memorial said in the news release.
In the spring of 2021, Blue Cross nurses staffed a North Memorial vaccination clinic in Brooklyn Center that administered more than 65,000 vaccines.
