Thomas Jefferson University in Philadelphia and Main Line Health System in Radnor, Pa., have joined together to form an integrated healthcare delivery system. A new organization called the Healthshare Group will be formed to promote collaboration between the two Delaware Valley organizations. The clinical facilities of the two partners include 1,924 licensed beds and 13,900 employees. A joint planning committee composed of trustees, physicians and administrators from both organizations will make recommendations on governance, management structure and implementation strategies. Thomas Jefferson University encompasses several divisions, including Jefferson Medical College and 717-bed Thomas Jefferson University Hospital. Main Line Health System includes 361-bed Bryn Mawr (Pa.) Hospital, 103-bed Bryn Mawr Rehabilitation Hospital in Malvern, Pa., 417-bed Lankenau Hospital in Wynnewood, Pa., and 168-bed Paoli (Pa.) Memorial Hospital.
Baxter Healthcare Corp. last week signed a five-year agreement with St. Louis-based BJC Health System in St. Louis to provide customized medical-supply delivery services to BJC's 13 hospitals through Baxter's ValueLink network. The deal is the largest one Baxter has signed with an independent integrated healthcare system, the company said. Executives said the deal will save the system $20 million in inventory and related costs and will provide as much as $450 million in sales for Deerfield, Ill.-based Baxter during the five year-period. BJC was created last year through the merger of Barnes Hospital, Jewish Hospital of St. Louis and Christian Health Services.
HealthTtrust-The Hospital Co. has sweetened the terms of its tender offer to Epic Healthcare Group bondholders, saying it will pay consent fees and redeem as much as $530 million in high-yield bonds. Initially, the Nashville, Tenn.-based company, which is buying Epic this month (see related story, p. 18), said it reserved the right to pay some bondholders a consent fee of $20 per $1,000 in principal amount to change the terms of the bonds without purchasing them. Because HealthTrust isn't extending its credit support to the Epic bonds, some bondholders apparently were troubled by the deal. After discussions with bondholders, HealthTrust decided that it would both pay the consent fees and purchase the bonds. HealthTrust's acquisition of Dallas-based Epic will create a 115-hospital chain. As part of the deal, HealthTrust is issuing stock and subordinated bonds, which executives believe will cost less than Epic's debt.
Abbott Laboratories reported that net earnings for the first quarter ended March 31 rose 6% to $366.2 million, or 45 cents per share, from $345.5 million, or 41 cents per share, in the year-ago period. Worldwide sales for the North Chicago, Ill.-based supplier rose 8.3% to $2.2 billion. U.S. sales rose 10.2% to $1.4 billion.
Allan M. Korn, M.D., has been appointed senior vice president of medical affairs at Premier Health Alliance, Westchester, Ill. Dr. Korn will head Premier's new office of medical affairs, which will assist partner hospitals' efforts to integrate physicians into delivery networks. He also will be responsible for coordinating Premier's other physician services and clinical data collection projects. An oncologist, Dr. Korn previously served as a consultant in the Chicago office of William M. Mercer. Premier represents 50 hospitals and health systems in 42 cities.
Kay E. Seim has been named to the newly created position of president, U.S. psychiatric operations, at Community Psychiatric Centers, Laguna Hills, Calif. Ms. Seim formerly was executive vice president in charge of U.S. psychiatric facilities.
Thomas J. Sabatino Jr. was named to the newly created position of senior vice president and general counsel for American Medical International, the Dallas-based chain of 36 hospitals in 12 states. Mr. Sabatino had been AMI's associate general counsel since 1992.