Healthcare Mergers: Expanding Reach, Improving Care

A major shift in the healthcare landscape has taken place. Priority Health, a well-known health plan based in Michigan, has taken over Group Health Cooperative of Eau Claire, a Wisconsin-based health plan. This move, finalized on January 1, 2026, makes Priority Health a player in four states. It's not just about growing bigger; it's about reaching more people and improving healthcare services. This deal has been in the works since July 2025. Both companies are excited about the future. They believe this merger will lead to better health outcomes and more innovative care. Nick Gates, the president of Priority Health, sees this as a new chapter. He thinks it's a chance to create new opportunities and build a healthier future. Sarah North, the CEO of Group Health Cooperative of Eau Claire, is also optimistic. She points out that this merger strengthens their ability to grow and stay relevant in a rapidly changing healthcare environment. It's not just about size; it's about staying sustainable and member-focused. This isn't the first time Priority Health has expanded. In December 2024, they became the sole member of Physicians Health Plan of Northern Indiana. This move added Indiana and Ohio to their service areas. Now, with the addition of Wisconsin, they're serving even more people.Several firms played a role in this transaction. Kaufman, Hall, and Associates, LLC served as the strategic and financial advisor to Group Health Cooperative of Eau Claire. Weld Riley was their legal counsel. Taft Stettinius & Hollister served as external legal counsel to Priority Health, and Ankura was their due diligence advisor. Priority Health has been around for nearly 40 years. They're the second-largest health plan in Michigan and the third-largest provider-sponsored health plan in the nation. They serve over 1. 3 million members each year in Michigan, Indiana, and Ohio. They're known for their quality, customer service, transparency, and product innovation. Group Health Cooperative of Eau Claire is a nonprofit, member-focused health plan. Founded in 1972, it serves approximately 61, 000 members across Wisconsin. They cater to Medicaid and Medicare beneficiaries, commercial employer groups, and state employees. This merger is more than just a business deal. It's about expanding access to high-quality care. It's about innovation and sustainability in healthcare. It's about building a healthier future for more people.