Three Kenosha, Wis.-based employers have chosen JSA Healthcare Corp., Columbia, Md., to develop, staff and operate an integrated managed healthcare system in this city of 130,000 residents 40 miles south of Milwaukee.
The deal, which is expected to save the Wisconsin employers as much as $36 million in healthcare expenses over the next 10 years, is described as an example of healthcare reform in which a healthcare alliance joins with an accountable health plan to provide workers with quality care at a reduced cost (See related story, p. 10).
The consortium chose JSA after attracting bidders by placing an ad in The Wall Street Journal.
JSA operates primary-care facilities at 23 locations across the country under contracts with insurers and self-insured firms.
The company said it has negotiated contracts with Kenosha Hospital and Medical Center as well as St. Mary's Medical Center and St. Luke's Hospital in Racine, Wis., which merged in 1990, on behalf of Kenosha Health Care Partners. The group includes Kenosha's city and county employees and those of Manu-Tronics, a local business. The deal affects 5,500 workers and dependents.
As part of the agreement, JSA said it would design and lease a new 130,000-square-foot family health center in Kenosha that would provide preventive, acute and continuing care. The company also will create a network of physician specialists.
JSA agreed to peg annual increases in the consortium's healthcare budget to no more than the consumer price index over the next 10 years. The three partners expect to spend $100 million on healthcare during that period.
Kenosha County no longer could afford to pay healthcare costs that have been rising 9% to 14% each year for a decade, said Brooke Koons, the county's director of labor relations and personnel.
JSA and the consortium will split the difference if there are any savings at the end of each year of the pact. Any financial losses will be absorbed by JSA, Mr. Koons said.-