Blue Cross and Blue Shield's Companion acquires three companies

Business Wire, July 16, 1996

COLUMBIA, S.C.--(BUSINESS WIRE)--July 16, 1996--Blue Cross and Blue Shield of South Carolina announced today a new joint venture with the Carolina HealthChoice Network, a group of hospitals, physicians and other medical professionals across central South Carolina, which will expand consumer healthcare choice.

Blue Cross has sold 49% of its stock in its subsidiary, HMO Blue, to the Network. The value of the transaction was not disclosed.

"This is the first partnership of its kind in South Carolina," said Ed Sellers, Blue Cross president and chief executive officer. The delivery and financing of healthcare is changing rapidly all over the nation and South Carolina is no exception. Innovative arrangements, like this one, stress commitment, partnership, accountability and quality," he said.

Tom Faulds, Blue Cross executive vice president and president of HMO Blue said, "The Midlands medical community and Blue Cross and Blue Shield have joined hands in a spirit of mutual cooperation to better serve the citizens of South Carolina. We have had a close relationship with the Network since it was formed in 1994 and we are pleased to enter this venture together. We can ensure that our communities are provided with the highest quality, widest choice and most cost-effective care available."

HMO Blue, a Blue Cross subsidiary, was formed in 1994 and now has about 10,000 members statewide. "We created HMO Blue to give people more choices in coverage and more choice of physician," Faulds said. Currently, there are over 3,600 doctors and 50 hospitals participating in HMO Blue across South Carolina.

Kester Freeman, chief executive officer of Richland Memorial Hospital and chairman of the Carolina HealthChoice Network said, "Our relationship with HMO Blue unites all the parties involved in delivering and financing healthcare as never before. This is the next step in the continuing evolution of healthcare and we're excited to be a part of it. As partners and as medical providers in HMO Blue, we view this venture as a renewal of commitment to patients and quality."

Members of the Carolina HealthChoice Network are Clarendon Memorial Hospital, Fairfield Memorial Hospital, Kershaw County Medical Center, Lexington Medical Center, Newberry County Memorial Hospital, the Regional Medical Center of Orangeburg and Calhoun counties, Richland Memorial Hospital, and Tuomey Regional Medical Center. Baptist Medical Center in Columbia is a Network affiliate.

CONTACT: Blue Cross and Blue Shield of South Carolina, Columbia

Donna Thorne, 803/788-0222, ext. 42437