Chisago Health Services, Chisago City, Minn., has entered into exclusive negotiations to join Fairview Hospital and Healthcare Services, Minneapolis, to prepare for healthcare reform.
Chisago Health, which operates one of the few remaining independent hospitals in the Minneapolis-St. Paul area, chose Fairview over HealthSpan Health Systems Corp. and eight other area systems and health plans, said Scott Wordelman, its president and chief executive officer.
Chisago City is located about 25 miles north of the Twin Cities. Chisago Health operates a 41-bed hospital, a 23-member multispecialty group practice with three clinics and a 40-bed long-term-care unit. Its annual revenues were $30 million in 1992.
A decision on whether to affiliate and what type of arrangement it will take will be made over the next few months, Mr. Wordelman said. Options range from contracting for services to a merger, he said.
Fairview, a diversified healthcare system, owns four hospitals with 1,466 beds in the Twin Cities area. Its revenues totaled $404 million last year.