Board members quit over changes to Alliance for Health mission

"Alliance will now morph into an insurance agency, using its nonprofit status to compete against for-profit organizations"
Tools

Alliance for Health, a Michigan-based nonprofit that advocates for lower healthcare prices, is shaking up its organizational strategy and could be moving into the health insurance space, reports Grand Rapids Business Journal.

The organization has focused on reducing healthcare costs and improving health through community-based activities and partnerships, according to its website. Its priorities include, for example, determining community needs, service gaps and unnecessary duplication, battling "unintended results of rapid changes in the healthcare system" and working to improve accountability.

Board members have resigned and organizations have pulled funding in the wake of the news.

"I'm incredibly disappointed with its current leadership chaired and run by two people who have no appreciation for the Alliance's history, benefit or potential impact," said Joe Gavan, president of investment firm Potomac Ventures. "As a result, the Alliance will now morph into an insurance agency, using its nonprofit status to compete against for-profit organizations and effectively ignoring its once noble mission of reducing the cost of healthcare to individuals and businesses."

Alliance's president and Chief Executive Officer Paul Brand told GBRJ he is not ready to go public with any strategic plans or changes.

For more
- here's the GBRJ article

Related Articles:
3 WellPoint board members resign for personal reasons
For-profit insurers will diversify into data market, industry watchdog predicts
New WellPoint CEO pick signals focus on provider collaboration