Blue Cross and Blue Shield of Kansas City Subsidiary Partners with Blue Cross and Blue Shield of Kansas - January 2011

January 03, 2011

FOR IMMEDIATE RELEASE
For Further Information:
Sue Johnson, 816-395-3566, susan.johnson@BlueKC.com
Mary Beth Chambers, 785-291-8869, mary.beth.chambers@bcbsks.com

KANSAS CITY, MO, January 3, 2011—Blue Cross and Blue Shield of Kansas City and Blue Cross and Blue Shield of Kansas today announced an equity partnership between the two Blue plans. Blue Cross and Blue Shield of Kansas has signed an agreement to become a minority equity partner in New Directions Behavioral Health, one of the Kansas City Plan's subsidiaries.

New Directions Behavioral Health serves 3.4 million lives in Kansas, Missouri, Arkansas and other states across the nation. The company offers managed behavioral healthcare, employee assistance and health coaching to its clients. The company is experiencing significant growth, and tripled the number of individuals served between 2008 and 2010.

Andrew C. Corbin, President and CEO of the Kansas plan, said, "New Directions provides great service and a quality product at a competitive price. We have partnered with New Directions since 2009 to provide utilization management services for our members and have developed a solid working relationship with their staff. It makes sense for us to further grow our business relationship with the Kansas City plan and New Directions."

"New Directions has been serving its clients for 15 years, and has seen considerable growth in recent years," said John W. Kennedy, Chairman and CEO of Cobalt Ventures, LLC, which operates the for-profit subsidiaries of the Kansas City plan. "This partnership with Kansas, part of our aggressive strategy to grow the company, brings New Directions considerable strength in the market, and, we believe, additional opportunities for growth."

"Our plan has had a close relationship with the Kansas plan for years. I'm very pleased this opportunity worked out for all parties involved. The Kansas plan has made a great long-term investment in a financially solid, respected company in the managed behavioral health industry," stated David Gentile, President and Chief Executive Officer of Blue Cross and Blue Shield of Kansas City.

"Blue Cross and Blue Shield of Kansas and New Directions have had a great working relationship for several years. We're excited about expanding our partnership and the opportunities it brings to both organizations," said John Quick, President and CEO of New Directions.

The equity partnership between Blue Cross and Blue Shield of Kansas and New Directions Behavioral Health took effect on December 23, 2010.

About Blue Cross and Blue Shield of Kansas

Blue Cross and Blue Shield of Kansas is an independent licensee of the Blue Cross and Blue Shield Association. BCBSKS is the state's largest health insurer, serving all Kansas counties except Johnson and Wyandotte.

About New Directions

New Directions Behavioral Health is owned by Blue Cross and Blue Shield of Kansas City, through Cobalt Ventures, LLC, and the Kansas City Blue Plan's subsidiary holding company. Founded in 1995, New Directions serves 3.4 million in Kansas, Missouri, Arkansas and across the nation. It offers managed behavioral healthcare, employee assistance, organizational consulting, and health coaching to its clients. The company is accredited by NCQA as an MBHO, and by URAC for utilization management and case management. New Directions' services have earned national recognition and awards for innovation and best practices. For more information on the company, visit its website at www.ndbh.com.

About Blue Cross and Blue Shield of Kansas City

Blue Cross and Blue Shield of Kansas City (Blue KC), the largest not-for-profit health insurer in Missouri and the only not-for-profit commercial health insurer in Kansas City, has been part of the Kansas City community since 1938. Blue KC provides health coverage and wellness related products and services to one million residents in the greater Kansas City area and Northwest Missouri. Through its subsidiary holding company, Cobalt Ventures, LLC, Blue KC operates its for-profit subsidiaries: New Directions Behavioral Health, Preferred Health Professionals, Premier WorkComp Management, and NDBH Holding Company. Blue Cross and Blue Shield of Kansas City is an independent licensee of the Blue Cross and Blue Shield Association. Our mission: To use our role as the leading health insurer to improve the health in the communities we serve. For more information on the company, visit our website at www.BlueKC.com.

• Back to News Archives