Vibrant Well being Group says it is exploring the sale of its Medicare Benefit well being plan enterprise in California because it seeks strategic alternate options for the troubled enterprise.
The Bloomington-based well being insurer announced the move Friday whereas additionally disclosing that lenders have extended a waiver to minimal liquidity necessities till June 30.
Vibrant Well being had been going through an end-of-April deadline to boost extra capital after revealing in March that it had failed to take care of the minimal liquidity required by a financing settlement.
“We have now acquired inbound curiosity in Vibrant Well being’s California Medicare Benefit enterprise, and given this, the board has determined to assessment strategic alternate options alongside different monetary choices,” Manny Kadre, lead unbiased director of Vibrant Well being’s Board of Administrators, stated in a information launch.
Promoting the Medicare Benefit enterprise could be the most recent plot level in Vibrant Well being’s dramatic rise-and-fall story. The corporate was financed by Minnesota’s largest-ever preliminary public providing of inventory earlier than it stumbled badly with claims processing and threat evaluation issues in what was as soon as a big enterprise promoting well being plans for people.
Vibrant Well being, promoting by means of government-run medical insurance exchanges, at one level had 970,000 particular person market enrollees throughout 15 states. In October, the corporate introduced it will exit the business this 12 months.
The corporate’s second space of focus had been Medicare Benefit well being plans, the place seniors go for authorities advantages by means of a non-public managed care well being insurer. At present, that enterprise in California has about 125,000 enrollees.
Proceeds from a sale “would considerably bolster the corporate’s monetary place and set up a robust basis for long-term sustainable progress,” Vibrant Well being stated Friday in a information launch.
Outdoors of medical insurance, Vibrant Well being owns and operates plenty of medical clinics that handle look after sufferers by means of “value-based care” contracts with different well being insurers.
The brand new settlement with lenders means Vibrant Well being “will likely be topic to more money circulation, money stability and different reporting necessities,” the corporate stated Friday in a regulatory submitting.
