The Office of the Insurance Commissioner received a request from PeaceHealth for a proposed acquisition of control of Columbia United Providers and its majority parent company, Southwest Washington Health Systems.

PeaceHealth and Southwest Washington Health Systems are both not-for-profit corporations. PeaceHealth is proposing to become the sole member of Southwest Washington Health Systems. Southwest Washington Health Systems is currently the controlling person of Columbia United Providers.

History of the process

We received the application for acquisition of control in September 2010. Our review of that application was completed in December 2010.

An adjudicative hearing was held on January 3, 2011 at our Tumwater office As a result of the applicant's request at a later date, the proceeding was terminated on March 10, 2011. Other information about the hearing can be found on the Commissioners web site.

What we look at

In all proposed sales, the companies must file an application (Form A) that details:

Financial information for both companies;
Who will operate the health carrier at the highest levels;
Their business plan for the health carrier; and
How the market competition would be impacted.

Evaluation criteria

Under state law, the commissioner must approve the deal unless:

It would substantially lessen competition or create a monopoly;
The buyer’s plans are unfair and unreasonable to the policyholders of the health carrier;
The buyer’s isn’t competent, honest, or financially sound enough to run a health carrier; or
It is in some way “hazardous or prejudicial to the insurance-buying public”.

Questions?

Please contact our holding company manager, Ron Pastuch, at 360-725-7211.

Updated 02/28/2012

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