Providence announced its intent to sell its health plan, exiting the “payvider” model as rising costs and operational complexity weigh on smaller regional insurers. The move reflects a broader trend of health systems refocusing on core care delivery and exploring partnerships instead of running insurance themselves.
The health systems ended negotiations for the sale of 14 CommonSpirit Health facilities to Essentia Health. Though the organizations did not comment on the reason for their decision, the move comes a few months after healthcare workers filed a petition detailing their concerns, including that the deal could result in layoffs.
By reducing administrative burden and redesigning workflows around human needs, it creates space for what matters most: connection between clinicians and patients.