SACRAMENTO, Calif.– Sutter Health and Aetna recently agreed to dissolve their joint venture healthcare company, Sutter Health | Aetna, by June 2023—the original relationship term and renewal date. The decision follows a comprehensive evaluation of the external environment on the joint venture’s operational performance.
Sutter Health | Aetna has faced significant headwinds in the market largely due to the lack of employer account movement with the ongoing pandemic. Many employers faced a time of uncertainty, ongoing workforce challenges and financial pressures due to the rising cost of labor, goods and services. This, along with operating in an extremely competitive industry and market, led to the joint venture not reaching its sales and membership growth goals. As with any healthcare organization, the joint venture needs a solid membership base to continue investing in member differentiation, enhancing its services to members and offering affordably priced products.
Despite these environmental challenges, Sutter continued furthering its vision by improving affordability, access and the customer experience. For example, the joint venture achieved improved affordability by reducing costs between 8-10%. Sutter Health | Aetna also delivered innovative and more convenient care options such as concierge care navigation services, virtual-first primary care, behavioral health navigation, 24/7 virtual care, at-home physical therapy and free transportation to and from medical appointments, testing and procedures.
It’s important to note that existing Sutter Health | Aetna members will continue to enjoy their current coverage and benefits and have access to the same provider network through the terms of their present plans. Aetna will transition plan sponsors and members from current joint venture products to other Aetna products during the normal renewal process.
Additionally, Sutter Health continues to participate in the Aetna provider network in other insurance products. This allows employers and consumers the option of selecting Aetna plans that include the Sutter Health network.
“Sutter Health remains committed to offering our communities affordable access to high-quality healthcare,” said Todd Smith, vice president of Product Development and Management at Sutter Health. “We’re pleased that through our ongoing collaboration with Aetna, Sutter’s doctors, hospitals and clinicians are available through a variety of competitively priced Aetna plans.”
