Group Health Members Vote For Merger

Members of Group Health Cooperative on Saturday voted in favor of a merger with the largest HMO in the country.

The advisory vote overwhelmingly endorsed the proposed affiliation between Group Health and Kaiser Permanente with 475 votes in favor and 42 against.

“It’s a way of guaranteeing our continuance. It’s a way of continuing to protect our existence as a separate organization,” Aubrey Davis, a Group Health trustee, said Saturday. “This is not a takeover. It’s an affiliation, a kind of partnership.”

The issue now goes to Group Health’s 39,000 voting members in Washington and North Idaho in a mail ballot. The results of the mail vote should be known by early May.

Group Health and Kaiser Permanente have been discussing a possible merger since September. The proposal has been endorsed by the Group Health board of trustees.

Group Health is the nation’s largest consumer-run health maintenance organization. Kaiser is the largest HMO in the nation, serving 7.4 million people in 17 states and the District of Columbia.

Group Health’s board members say Kaiser’s infusion of capital and access to national markets is necessary or Group Health would have to switch from nonprofit to for-profit status, put itself up for sale or try to continue as is.

Opponents are afraid Kaiser would use Group Health funds to help finance further national expansion efforts, thereby degrading service or increasing costs for cooperative members in Washington.

About 800 members had registered for Saturday’s meeting where they heard pro and con statements on the alliance before voting.