Mayo announces new business arrangement with Medica, around 200 - KTTC Rochester, Austin, Mason City News, Weather and Sports

Mayo announces new business arrangement with Medica, around 200 jobs to be impacted

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ROCHESTER, Minn. (KTTC) -

A major decision by Mayo Clinic will be impacting approximately 200 staff members.

According to a news release, posted on Mayo's internal-web Thursday, Mayo Clinic announced a new business arrangement with Medica. Details of the arrangement include Medica acquiring MMSI, which does business as Mayo Clinic Health Solutions. MMSI is in charge of administering health insurance plans for 260,000 people, including all of Mayo Clinic's employees.

In a public statement, Mayo's C.F.O. Kedrick Adkins says the transition "Offers technologies and opportunities to explore that can benefit patients and clients." 

Medica is a Minneapolis-based non-profit already offering health care services in the region.

In a private communication on Mayo Clinic's Internal Web, the clinic said, about 200 staff members will be affected by the transition. The transition is expected to take place over the next two years in a phased manner. 

The memo said the clinic will provide workers with multiple employment options to consider. 

Mayo is telling employees it will remain "self-insured" and this change doesn't alter the content of the plans. 

The acquisition of MMSI is expected to be completed by the end of 2017. A detailed timeline is under development for migrating MMSI clients to Medica beginning in mid-year 2018 and continuing through 2019.

Click here for a look at the press release.

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