Queen's continues divestiture move
The Queen's Health Systems said yesterday it has signed a memorandum of understanding with a California firm for the sale of Queen's Health Management Corp., continuing its efforts to get out of the health insurance business.
Queen's Health Management Corp.'s health-insurance businesses include a preferred-provider network and third-party administration functions.
The company covers about 30,000 members of large local employers and national health plans.
Queen's said negotiations are continuing with the California company. Queen's declined to name the California firm.
If a final agreement is signed, the sale may take effect as early as July 1, Queen's said.
Queen's said yesterday that plans "continue to be negotiated" for staffing if the sale goes through. Queen's Health Management has about 70 employees.
The Queen's Health Systems decided to leave the health insurance business in 1999 to concentrate on patient care. Last month Queen's Health Management announced it would discontinue Queen's Hawaii Care, a state QUEST health plan providing insurance for those who do not qualify for or cannot afford other programs.