Who: Anthem, Inc. (Indianapolis) merged with Blue Cross & Blue Shield of Connecticut (North Haven, Conn.)
When: Aug. 1
Total PR/Marketers: 71 (50-Anthem; 21-BCBSConn.)
Effect on PR/Marketing: The most obvious effect is the name change to Anthem Blue Cross & Blue Shield of Connecticut. For BCBSConn., merging with a familiar insurance heavy-hitter like Anthem was necessary for its survival in the Connecticut market. Anthem, which has successfully merged with four other BCBS plans, brings some significant marketing resources to the table that will allow Anthem to become more competitive. For example, BCBS will have access to Anthem's sophisticated computerized data network of doctors and hospitals in the area that would have cost them millions of dollars to purchase independently.
Anthem is taking a "business as usual" approach to BCBSConn, relying on its local marketing expertise. To date there have been no layoffs, and the marketing department is expected to be kept in tact, according to Don Stengele, director of corp. communications at Anthem and Stanton Beaghen, VP of corp. communications at BCBSConn.
Merger Campaign: A key market for Anthem BCBSConn. will be the senior demo (65+), which has 40 percent market share. Anthem recently received regulatory approval to market a Medicare risk product.
The primary marketing focus will be on membership reassurance and "emphasizing the word 'Connecticut'" said Beaghen. Most people want to know how and if there will be change or interruption in services, so the messages will convey that the Anthem component to BCBSConn.'s strategic vision is virtually the same.
However, the merger should allow BCBSConn. to strengthen its local presence in regional media vehicles like magazines, newspapers possibly cable TV.
Merger Challenges:
Communicating to seniors that their coverage will not be impacted by the merger.
Anthem name is not well-known in Connecticut market, therefore name change has to be addressed strategically so members won't feel BCBSConn's local appeal is lost.
Image patrol: dealing with special interest citizens groups that attack mergers and make claims about lower quality of care.
Other Recent M&As:
REM Inc. (Edina Minn.), a multi-state healthcare system that specializes in home healthcare, community living services and disability programs and senior healthcare, has acquired Heartland Home Health (Annandale, Minn.), a home healthcare company. (REM, Inc., 612/925-8023)
Advocat Inc. (Franklin, Tenn.) has announced plans to acquire the assets of Pierce Management Group of North Carolina, a privately held assisted living company that owns 15 facilities and leases 14 others. Advocat operates 87 facilities (65 nursing homes and 22 assisted living clinics. (Advocat, Inc. 615/771-7575)
Phoenix Healthcare Corp. (Nashville), a commercial health plan based in the South, announced plans to merge with HealthNet TNCare HMO Inc. (Nashville), the largest independent managed care organization in the Middle Tennessee.
(Phoenix Healthcare, 800/242-8840; Health Net, 615/291-7000)