JANUARY 08, 2020 11:14 AM (EST)
AM Best Comments on Credit Ratings of Priority Health Following Completion of the Merger with Total Health Care, Inc.
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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 08, 2020 11:14 AM (EST)
AM Best has commented that the Credit Ratings (ratings) of Priority Health (Grand Rapids, MI) remain unchanged following completion of its merger with Total Health Care, Inc. (Detroit, MI).
Priority Health completed the merger with Total Health Care Inc. and its subsidiary, Total Health Care USA, Inc. this month following approval by Michigan regulators. Concurrent with the merger, the two organizations have agreed to establish a $25 million foundation to invest in improving the health of Detroit communities. The merger of Total Health Care, Inc. should enhance Priority Health’s business profile and further accelerate its strategy to expand Medicaid business statewide. In addition, the merger further demonstrates Priority Health’s strategy to reinvest capital into growing the company while contributing significantly to its parent’s (Spectrum Health System) consolidated revenue and earnings. AM Best expects the near-term impact on capital and earnings to be modest. Additionally, AM Best expects Spectrum Health System to continue providing support as necessary.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.