Alliant Health System and Baptist Healthcare System will need antitrust clearance for their newly proposed joint venture, but spokespersons for the two Louisville, Ky.-based hospital systems said last week the systems don't anticipate any problems.
Officials said the systems have not filed for tax-exempt status with the Internal Revenue Service for the venture but will do so shortly. The same applies for antitrust clearance from state and federal law enforcement agencies.
Through the collaboration, the systems will control more than 35% of the inpatient market in Louisville, according to the latest staffed-bed figures from the American Hospital Association.
Alliant owns three hospitals in Louisville with a total of 751 staffed beds. It also manages another 24 hospitals in Kentucky, Illinois and Indiana. Baptist owns 407-bed Baptist Hospital East in Louisville and four other hospitals in Kentucky.
"The agreement does not constitute a merger," the systems said in a statement announcing their plans. "Alliant and Baptist will remain autonomous organizations, and their assets and finances remain separate."
The two systems have been discussing ways to collaborate for nearly 18 months (May 17, 1993, p. 4). The systems formalized their talks in December 1993 and announced their plans on Sept. 15 (Sept. 19, p. 14).
Daniel Shaw, Alliant's public relations manager, said the venture, which has yet to be named, will be a not-for-profit corporation governed by a 16-member board. Each system will appoint four physicians and four community representatives to a shared board, he said. The systems will market hospital and physician services jointly, said Mary Elise Biegert, Baptist's communications director.
Officials describe the venture as the first step toward creating a statewide healthcare network.
How physicians will participate in the collaboration has yet to be determined, Ms. Biegert said.