Cardinal Timothy Dolanand New York's Catholic Bishopshave revealed plans tocreatea $3.2 billion health charityfocused on aiding low-income and poor New Yorkers.
The newly formed Mother Cabrini Health Foundationplans to provide up to $150 millionin grants eachyear to serve New Yorkers in need. The moneywill be steered by a board of health experts, business leaders and philanthropists, including Dr. Laura Forese, chief operating officer of NewYork-Presbyterian, a major health-care player in the Lower Hudson Valley.
“Low-income New Yorkers often find it hard to maintain their health,”Forese said. “With partners like the Mother Cabrini Health Foundation helping to combat the social factors that perpetuate health disparities, New York’s healthcare community will be able to take these problems head on.”
The foundation stems fromtheblockbuster sale of Fidelis, a nonprofit health plan, to Centene Corp., whichis pending final approval.
DEAL: Fidelis and Centene strike major deal that affects millions of New Yorkers
DRUGS: Copay groups - critical public charities or fronts for drug makers?
Centene, the nation's largest Medicaid managed care plan provider, isbuying Fidelis Care for about $3.75 billion, a move to enter the lucrative New York state market, USA TODAY Network reported.
Impact of the deal
Under the deal, Fidelis, which sells health insurance plans to New York state residents and has 1.6 million members, will become Centene's health plan in the state.
The acquisition allows Centene, based in St. Louis, to have a sizable presence in the country's four largest states in health insurance membership – California, Florida, New York and Texas.
Centene specializes in Medicaid managed care plans, which are the private-market option for Medicaid recipients. Medicaid, funded by the federal and state governments, is a government health program for low-income Americans and also runs its own public option.
Founded in 1993 as the Catholic Health Services Plan of Brooklyn and Queens, Fidelis Care, which is a not-for-profit corporation, has insurance plans accepted by 70,000 health care providers in New York.
The transaction has gained crucial approvalby the state Department of Health and Department of Financial Services. Itis awaiting final approval by the New York Attorney General, which is likely to be delayed by Eric Schneiderman's sudden resignation.
In addition to funding the new health charity, the sale of nonprofit Fidelis to for-profit Centenepreviously ignited controversy after the bishops and corporate executives agreed to pay $2 billion to help balance New York state's budget, according to Albany-based think tank Empire Center.
The groupaccused Gov. Andrew Cuomo of setting a dangerous precedent of government control over health care dealsby pressuring the bishops and executives into making the $2 billion payment to state coffers over four years.
Cabrini legacy
The foundation is named after Sister Frances Xavier Cabrini, known as Mother Cabrini, an advocate for immigrants and children and the founder of the Institute of the Missionary Sisters of the Sacred Heart of Jesus, according to the Catholic Diocesan Bishops of New York State.
Building upon Mother Cabrini’s legacy, the foundation seeks to improve the health and well-being of poor and underserved New Yorkers across all parts of the state, regardless of background, including immigrant and other marginalized communities, the Bishops said.
In addition to Forese, other board members announced recently include the following:
- ChairAlfredKellyJr., whohas served as chief executive officer of VisaInc., since December 1, 2016, and has been a member of Visa’s board of directors since 2014.
- RobertBennett, whoserved as the chancellor of the New York state Board of Regents from March 2002 through April 2009. Heis currently a trustee of the Statler Foundation.
- Kathryn Connerton, who has served as the president and chief executive officer of Lourdes Hospital in Binghamtonsince December 2014.
- Samuel DiPiazza Jr., who is chairman of the board of trustees of The Mayo Clinic, one of the nation’s preeminent healthcare organizations.
- StanleyGrayson, who has served as the president and chief operating officer at M.R. Beal & Co.He currently serves on the board of the YMCA of Greater New York and as a trustee of Holy Cross College.
- Carla Harris, who is vice chairman, global wealth management and senior client adviser at Morgan Stanley.
- CatherineKinney, who served as the president and co-chief operating officer of the New York Stock Exchange from 2002 to 2008.She serves as the chairman of the board of Catholic Charities of the Archdiocese of New York.
- Sister Pietrina Raccuglia, who is the president and chair of the board of the New York City-based Cabrini Mission Foundation.
- Kathryn Ruscitto, who served as the president and chief executive officer of St. Joseph’s Health from 2011 through 2017. St. Joseph’s Health isa nonprofit regional health care system based in Syracuse.
- Kevin Ryan, who currently serves as the president and chief executive officer of Covenant House, one of the largest charities in North and Central America providing shelter, food, immediate crisis care, and an array of other services to homeless, runaway and trafficked young people.
- Robert Unanue, who is the president and chief executive officer of Goya FoodsInc., the largest Hispanic-owned food company in the United States.