The failed conversion of CareFirst BlueCross BlueShield to for-profit status: Part 2, Lessons learned.

This article presents lessons for other states and all types of nonprofit health care organizations from the failure by nonprofit CareFirst Blue Cross Blue Shield to convert to for-profit status and be sold to the publicly traded Wellpoint Health Networks, Inc. The lessons relate only in part to conversions. More broadly they concern any kind of strategic decision making by nonprofit health care boards of directors and their executives that substantially affects the public interest. This article is a companion to one by this same author published in the Fall 2004 issue of Inquiry. That article chronicled the events and political environment surrounding the conversion proposal, the review process and decision, and the aftermath of actions and reactions by various parties, including state legislation to clarify CareFirst's mission and to reform its board.

The failed conversion of CareFirst BlueCross Blueshield to for-profit status: part 1, the whole story.

This article presents in detail the relevant facts surrounding CareFirst's failed attempt to convert to for-profit status and be acquired by the for-profit company, Wellpoint Health Networks, Inc. It chronicles events and describes the political environment leading up to the Maryland insurance commissioner's review of the application, the review process and roles played by various stakeholders and the media, the commissioner's decision and rationale, and the aftermath of actions and reactions by various parties, including state legislation to reform CareFirst. This case study was based on interviews with several key players, as well as a review of numerous newspaper articles and the wealth of documents prepared for, and emanating from the review process. Providing an in-depth look at the missteps by CareFirst's board and executives, this article sets the stage for a second one translating these details into lessons for other states and for all types of nonprofit health care organizations involved in any kind of strategic decision making that affects the public interest.