Healthcare Mergers: Expanding Reach, Improving Care
Priority Health Acquires Group Health Cooperative of Eau Claire
A significant change has occurred in the healthcare industry. Priority Health, a prominent Michigan-based health plan, has acquired Group Health Cooperative of Eau Claire, a Wisconsin-based health plan. This transaction, finalized on January 1, 2026, extends Priority Health's reach to four states.
A Strategic Move for Growth and Innovation
The merger, which has been in the works since July 2025, is more than just an expansion. It's about reaching more people and improving healthcare services.
"This is a new chapter for us. It's an opportunity to create new opportunities and build a healthier future." Nick Gates, President of Priority Health
Leadership Perspectives
Sarah North, the CEO of Group Health Cooperative of Eau Claire, shares the enthusiasm. She believes the merger will strengthen their ability to grow and stay relevant in the rapidly changing healthcare landscape.
"It's not just about size; it's about staying sustainable and member-focused." Sarah North, CEO of Group Health Cooperative of Eau Claire
A History of Expansion
This isn't Priority Health's first expansion. In December 2024, they became the sole member of Physicians Health Plan of Northern Indiana, adding Indiana and Ohio to their service areas. With the addition of Wisconsin, they are now serving even more people.
Key Players in the Transaction
Several firms played crucial roles in this transaction:
- Kaufman, Hall, and Associates, LLC: Strategic and financial advisor to Group Health Cooperative of Eau Claire
- Weld Riley: Legal counsel to Group Health Cooperative of Eau Claire
- Taft Stettinius & Hollister: External legal counsel to Priority Health
- Ankura: Due diligence advisor to Priority Health
About Priority Health
- Founded nearly 40 years ago
- Second-largest health plan in Michigan
- Third-largest provider-sponsored health plan in the nation
- Serves over 1.3 million members annually in Michigan, Indiana, and Ohio
- Known for quality, customer service, transparency, and product innovation
About Group Health Cooperative of Eau Claire
- A nonprofit, member-focused health plan
- Founded in 1972
- Serves approximately 61,000 members across Wisconsin
- Catering to Medicaid and Medicare beneficiaries, commercial employer groups, and state employees
The Bigger Picture
This merger is more than just a business deal. It's about:
- Expanding access to high-quality care
- Innovation and sustainability in healthcare
- Building a healthier future for more people
