Hartford health giant Aetna Inc. and Virginia's Inova Health System are forming a jointly owned health insurance company, a major strategic gambit for both entities as they seek to adjust to a rapidly evolving business environment, The Washington Business Journal reports.
The new company, Innovation Health Plans, will launch Jan. 1, 2013 with commercial and Medicare business lines in Northern Virginia, according to the Falls Church, Va., hospital system.
In the deal, Aetna gets a new path into Virginia, a state where it holds scant market share, WBJ reports.
Inova achieves a major strategic imperative as it moves to hold off competitors and find new ways of improving quality and efficiency in delivering care.
Financial terms were not disclosed.