Medica to buy Mayo Clinic's MMSI

Aug. 17--A Minnesota insurance giant announced this morning that it is buying Mayo Clinic's health benefits division called MMSI.

Minneapolis-based Medica is buying MMSI from Mayo Clinic by the end of 2017. No details were released about what the change could mean for customers or MMSI employees in Rochester. Also, the announcement did not include how much Medica is paying Mayo Clinic for its for-profit division.

MMSI, which is based in Rochester, is described as "a health benefits management company and licensed third-party administrator that provides plan administration services and health care products to 260,000 members through 28 customers."

Originally called Mayo Management Services, Inc. when it was founded in 1986, MMSI now operates under the name of Mayo Clinic Health Solutions.

Mayo has not released how many people work for MMSI in Rochester. In 2003, MMSI had a staff of more than 300.

"Complementing each organizations' strengths is important in this decision," stated Mayo Clinic Chief Financial Officer Kedrick Adkins in today's announcement. "This new arrangement offers technologies and opportunities to explore that can benefit patients and clients."

MMSI has morphed many times during its 31 years within Mayo Clinic.

In 2006, Mayo Clinic merged MMSI with Mayo Medical Ventures to form the for-profit division of Mayo Health Co. That move was done "to create some more synergy and more efficiencies," according to Mayo Clinic. MMSI had 31 clients at that time.

Mayo Health Co. also included management of Mayo Clinic's magazines, publications and Web site, www.mayoclinic.com. It also included management of Mayo Clinic pharmacies and stores.

___

Visit the Post-Bulletin at www.postbulletin.com

Distributed by Tribune Content Agency, LLC.