Industry · AZ
Ascension, CommonSpirit to Transfer Arizona Medicaid Plan Mercy Care to Aetna
Becker's reports that Ascension and CommonSpirit Health's Dignity Health have agreed to transfer ownership of Mercy Care, an Arizona managed care plan, to Aetna, which has run the plan's daily operations for more than 20 years, pending regulatory approval. The deal is part of Ascension's broader financial turnaround, which cut operating losses from $3 billion in 2023 to $120 million in fiscal 2026 through hospital divestitures, cost discipline, and a $3.9 billion acquisition of ambulatory surgery operator AmSurg. Ascension's CFO said the health system's core strength is as a provider, not an insurer, and that Mercy Care "didn't fit really well" with either system's strategy. Timing of regulatory approval and transition was not specified.
Why it mattersArizona regulators and Mercy Care enrollees face a change in Medicaid managed care plan ownership that will require state approval and could affect network and operational continuity.