Indianapolis-based ADVANTAGE Health Solutions Inc. is discontinuing its Medicare Advantage business. The company says the move comes on the heels of a financial review launched by its board of directors that shows losses of more than $56 million through three quarters of fiscal year 2015. The board has named Michael Hone acting chief executive officer.
Hone, a corporate transition and strategy consultant, succeeds founding CEO Vicki Perry, who has been with the company since 2000.
The company is having an independent auditor review its financial and accounting procedures. It is also working with the Indiana Department of Insurance and the U.S. Center for Medicare and Medicaid Services to move patients to other coverage providers. Hone says "we appreciate IDOI Commissioner Robertson’s commitment to protecting the interests of Hoosiers and will work with him and our colleagues at CMS regarding an orderly transition of coverage. We are also committed to standing behind our commercial lines of business."
ADVANTAGE says its two core shareholders, St. Vincent and Franciscan Alliance, will cover losses incurred from the transition and provide resources for coverage continuity for existing plan participants.
The company reported losses of $10.7 million during the previous fiscal year as its faces "industry-wide challenges and closures of other provider-owned plans." Chairman Robert Brody says it has become clear the Medicare Advantage business is "no longer financially viable."