KANSAS CITY, Mo.-Eighteen physical-therapy clinics in the Kansas City area and a local rehabilitation hospital have joined a network to contract with managed-care organizations and other payers. Innovative Health Alliances, a subsidiary of Continental Medical Systems, set up the network and will manage it. The company said it's building similar networks in two other markets. Mechanicsburg, Pa.-based Continental is part owner and manager of 80-bed Mid-America Rehabilitation Hospital in Overland Park, Kan., a member of the network. Continental runs 38 rehabilitation hospitals.
JEFFERSON CITY, Mo.-Two of this city's three hospitals, 95-bed Memorial Community Hospital and 129-bed Still Regional Medical Center, expected to merge last week. Executives said the facilities had obtained clearance from the Federal Trade Commission for the consolidation. The merger will trim their expenses by 5%, a spokeswoman said. The hospitals also are planning an affiliation with St. Louis-based BJC Health System. Terms of the affiliation are being discussed. Memorial reported profits of $1.9 million on net patient revenues of $29.8 million in 1992, the most recent year for which financial information was available. Still Regional had profits of $917,000 on net patient revenues of $34.7 million last year. The hospitals estimate that they control about 26% of an eight-county market. They compete against 14 other facilities regionally, the spokeswoman said. Ed Farnsworth, Still Regional's administrator, will become president and senior executive officer of the new entity. Memorial's president, Gordon Butler, will become vice president-administrator. Each facility will nominate six members to the new board.
FORT WORTH, Texas-Harris Methodist Health Plan and Kaiser Permanente have spearheaded the formation of the North Central Texas HEDIS Coalition. HEDIS is the Health Plan and Employer Data and Information Set prescribed by the National Committee for Quality Assurance to give employers a way to measure health plans in quality and cost-efficiency. The coalition is the nation's second regional HEDIS, executives said. The coalition also includes William M. Mercer, Arthur Andersen, Aetna Life & Casualty Co., Prudential Health Care System-North Texas and GTE Corp. The coalition's members intend to share and publish regional information about managed care. Harris Methodist Health Plan is one of the nation's largest hospital-based health maintenance organizations, with 160,000 enrollees. Oakland, Calif.-based Kaiser has 126,000 members in the Dallas/Fort Worth market. Prudential's managed-care plan has 230,000 members in the area.