The $2 billion merger of Minnesota healthcare giants Medica and HealthSpan Health Systems Corp. was completed last week. The new Allina Health System will be the state's largest healthcare delivery system, having as many as 750,000 patients (Dec. 13, 1993, p. 3). Allina will be headed by Gordon Sprenger, former executive officer of HealthSpan, a string of hospitals and clinics, and K. James Ehlen, former president of Medica, an HMO. Specifics of the management hierarchy will be announced later this year, executives said.
Moody's Investors Service has confirmed ratings of 12 Indiana hospitals and lowered one. The downgrade of Bedford (Ind.) Medical Center to Ba from A reflects the hospital's weak cash position, above-average debt position, possible additional borrowings and concerns about the hospital's small number of beds, Moody's said. Bedford's rating affects $5.9 million of debt. Moody's Indiana ratings review is part of an ongoing state-by-state analysis of hospital credits.
The control of Sandwich (Ill.) Community Hospital will be determined Aug. 24. Ballots for an election to take over the hospital were received last week. A physician and an administrator are using an outdated bylaw in the 53-bed hospital's governance rules in a battle to dominate its board (July 25, p. 6). The bylaw allows anyone who pays a $5 fee to join the Sandwich Community Hospital Association, which elects the hospital's board. Some 2,500 ballots have to be counted.
The Hospital Association of Metropolitan St. Louis has taken steps to complete its closure Dec. 31 (June 27, p. 70). Last week, the seven employees of its purchasing arm, Shared Resource Enterprises, worked their last day. Association members approved its sale for more than $1 million to Los Angeles-based Purchase Connection earlier this month, a HAMSTL spokeswoman said. They also confirmed by a vote of 41-2 the board's decision to dissolve 58-year-old HAMSTL. Not-for-profit members and foundations will share the proceeds from the sale of HAMSTL's assets.
PhyCor said its net income for the second quarter ended June 30 rose 93% to $3.1 million, or 30 cents per share, from net income of $1.6 million, or 21 cents per share, in the year-ago period. Revenues rose 28% to $50.5 million. For the six months, net income rose 69% to $5.4 million, or 57 cents per share, from net income of $3.2 million, or 43 cents per share, in the year-ago period. Revenues rose 26% to $100.2 million. Nashville, Tenn.-based PhyCor manages 20 multispecialty medical clinics in 12 states.
The New York City Health and Hospitals Corp. named leaders for five of the six regional healthcare networks being established in the city (May 30, p. 17). HHC's board approved the selection of Pete Velez (Queens), Pamela C. Brier (South Manhattan/Brooklyn) and Bruce Goldman (North Manhattan) as senior vice presidents. The board also approved two acting senior vice presidents, Mark J. Kantor (North Manhattan/South Bronx) and Lorraine C. Tregde (North Bronx). A national search is under way for a senior vice president to head the Brooklyn/Staten Island network. The vice presidents will develop and implement plans for improving quality, access, patient care and financial health in each region.
Steven Caywood has joined the Pilot Group, a Pittsburgh-based consulting firm. Mr. Caywood, who will be based in Pilot's new Jacksonville, Fla., office, was the former administrator of Hilton Head (S.C.) Hospital and West Pennsylvania Hospital in Pittsburgh. Pilot was formed in 1993 in a partnership arrangement with several former West Pennsylvania administrators and a Pittsburgh law firm. Pilot specializes in physician-hospital organizations, integrated system development and managed care.