CHICAGO-Louis A. Weiss Memorial Hospital on Chicago's North Side began construction this month of a $1.8 million inpatient rehabilitation unit. The facility is being paid for by 225-bed Weiss, a part of the University of Chicago Hospital system. The 12,700-square-foot unit has been approved by the Illinois Health Facilities Board and is expected to be completed by next spring. The new rehabilitation unit will be managed by Schwab Rehabilitation Hospital and Care Network, which operates an 85-bed comprehensive inpatient rehabilitation hospital on Chicago's West Side. Schwab is an affiliate of Mount Sinai Health System of Chicago. In a related deal, Schwab's residency training program is affiliating with the University of Chicago Pritzker School of Medicine.
KALAMAZOO, Mich.-Borgess Medical Center and a group of 17 family practice physicians in Kalamazoo have formed a foundation-model integrated system called ProMed Healthcare. Assets and employees of the practice, Professional Medical Center, will be transferred to a not-for-profit foundation owned by Borgess Health Alliance, the parent company of 426-bed Borgess Medical Center. The foundation has applied for a federal tax exemption, which could take two or three years to decide, said Joseph Alberding, M.D., president and chief executive officer of ProMed. Dr. Alberding said the physicians believed a foundation in which hospital and physician incentives are unified would be more easily sustained under capitation than a physician-hospital organization. ProMed serves more than 60,000 patients at three offices. The physicians will continue to provide services for health plans run by Kalamazoo's other hospital, Bronson Methodist Hospital, with which Borgess competes.
CLEVELAND-EHN Holdings, parent company of the Emerald Health Network, will form a new HMO in Northeast Ohio to be called Emerald HMO. Emerald plans to begin marketing products this fall in the seven-county area of Northeast Ohio. Emerald Health Network now serves more than 270,000 enrollees in Cuyahoga, Lorain and Summit counties.