Two California Adventist healthcare systems have joined forces to establish Pacific Integrated Healthcare, an expansive integrated delivery network with 250 primary-care physicians that plans to pursue managed-care contracts in five Western states.
Executives of Adventist Health System/Loma Linda (Calif.) and Adventist Health System/West, based in Roseville, Calif., said last week the new network will let both organizations position themselves to become part of larger, statewide networks that serve large healthcare purchasing pools. The two systems have been operating independently.
Executives said one trend emerging from local and national healthcare reform initiatives is the need for delivery networks that offer a broader array of services to a wide geographic region.
Frank Dupper, president of AHS/West and chief executive officer of the new network, said the systems chose to consolidate managed-care contracting operations to offer healthcare purchasers "one-stop shopping" via expanded geographic coverage and competitively priced contracts.
The new network will include 22 hospitals with a total of 3,884 beds and some 4,400 physicians providing healthcare services to about 250,000 managed-care enrollees. Figures for the new network don't include medical clinics and other less formal affiliations.
Both organizations said the creation of the new venture continues the consolidation begun two years ago by three AHS/West hospitals in Southern California, which resulted in the formation of the Southern California Healthcare Network. The network comprises four physician groups and three hospitals-Glendale (Calif.) Adventist Medical Center, Simi Valley (Calif.) Hospital and Health Care Services and White Memorial Medical Center in Los Angeles.
Adrian Zytkoskee, AHS/West's vice president of managed care and strategic planning, said Pacific Integrated eventually will seek partners or other networks with which it can expand its territory in the Western states.
Adventist Health System/Loma Linda consists of 627-bed Loma Linda University Medical Center, 89-bed Loma Linda University Behavioral Medicine Center, 120-bed Loma Linda Community Hospital and 244-bed Children's Hospital. Through its alliance with La Habra, Calif.-based Friendly Hills Healthcare Network, AHS/Loma Linda has 1,331 managed-care contracts with 475 health plans. Its assets are valued at $793 million.
Adventist Health System/West has assets of $850 million, consisting largely of 18 hospitals in California, Hawaii, Oregon, Utah and Washington.