Health Systems International, the West Coast managed-care company based in Woodland Hills, Calif., announced an agreement last week that will give it a foothold on the East Coast.
HSI signed a letter of intent to acquire a majority interest in Integrated Health Networks, a Philadelphia-based managed-care company owned by Main Line Medical Enterprises. Main Line Medical is jointly owned by Main Line Health System and Main Line Physicians Associations.
Terms of the deal were not disclosed.
Integrated Health Networks operates MaxNet, a PPO with 24,600 group health enrollees and 18,000 covered under workers' compensation. Its network of providers includes 34 hospitals and 30,000 physicians in the greater Philadelphia-southern New Jersey region.
The deal gives Main Line hospitals more freedom to negotiate with two local managed-care powerhouses, Blue Bell, Pa.-based U.S. Healthcare and Independence Blue Cross in Philadelphia, said George Hatzfeld, an IHS spokesman. He said the agreement to sell a stake in Integrated Health Networks is part of a larger plan to be announced this week. Mr. Hatzfeld wouldn't disclose details of the plan.