History

In 1992, Dr. Gilbert sought out respected Idaho business partners to pursue his vision of an integrated health care system with practicing physicians as key decision makers. Dr. Gilbert recruited local business leader, Robert V. Hansberger, the founder of Boise Cascade Corporation, to be the Chairman of the Board of Directors of Primary Health. Primary Health was incorporated in Idaho in 1993 with three immediate care clinics, one each in Boise, Nampa and Meridian. An initial round of venture capital investment was completed in April 1995, with proceeds to be used for future clinic investment and investment in the newly developing health insurance products. By the end of 1995, Primary Health operated 13 clinics in southern Idaho, including merged practices in family medicine, obstetrics/gynecology and pediatrics.

In 1996 Primary Health formed Primary Health Network, Inc., the corporate organization for its managed care insurance company. Primary Health Network commenced marketing in late 1996 and had gained a few hundred insured "members" by the end of 1996. An individual with extensive managed care industry start up experience, Elden R. Mitchell, was recruited to be the president & chief executive officer of Primary Health.

The years 1997 through 1999 were heavy growth and development years. The Idaho Wellness Partners, a medical group with three separate practice locations, was merged into the company. One additional clinic was started. Four clinic locations were consolidated into two sites and one clinic was closed. Primary Health, Inc.’s state of incorporation was transferred from Idaho to Delaware to enhance capital financing efforts. A second major round of venture capital funding was completed in June 1998 with proceeds planned for additional clinic and network expansions and investment in transitioning the Health Plan’s offerings to large employers. Idaho Physicians Network, a small independent physician association, was merged into Primary Health as a majority-controlled entity.

In the years 2000 and 2001 Primary Health completed its transition from a developing company to a more stable organization positioned to grow profitably. Health Plan membership grew rapidly - and then shrank as premiums were adjusted to reflect underlying market trends. As a result, the Health Plan became profitable for the first time in its history. One clinic outside the Boise market was closed. The medical group was formally incorporated as an Idaho corporation named Primary Health Medical Group, Inc. A new clinic management structure was put into place, headed by a Medical Management Committee, selected from nominations of the providers of the group itself. The year 2001 ended with smaller, but profitable, membership in the Health Plan; thirteen physician clinics offering services from the Idaho-Oregon border at Fruitland to the Boise metropolitan area; and over 700 medical providers serving as the network for nearly 70,000 lives through Idaho Physicians Network.