OLDWICK, N.J.--(BUSINESS WIRE)--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.
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