RED BANK, N.J.-First Option Health Plan, a new provider-owned HMO, has tentatively retained Las Vegas-based Sierra Health Services to develop and implement a Medicare risk product. Under the proposed agreement, Sierra will prepare and file the application with Medicare. It will be reimbursed for its development costs and receive annual payments for eight years beginning in 1996. Sierra also has been asked to assist in filings to expand First Option's Medicare risk plan into New York, Connecticut, Pennsylvania and Delaware. First Option is a for-profit HMO. Its owners include 47 hospitals and 7,500 physicians (July 4, p. 19; Dec. 20/27, 1993, p. 24). Sierra operates Nevada's largest HMO and other healthcare subsidiaries.
NEW YORK-Newport, Calif.-based Capp Care said it will expand managed-care coverage to 90,000 people in New York and New Jersey under an agreement with Premier Preferred Care, a hospital-owned PPO. Capp Care covers 3.7 million people nationwide through PPO networks that include more than 84,000 providers. The agreement will give Capp Care access to Premier Preferred Care's network of 5,000 physicians and 60 hospitals in New York and New Jersey. Financial terms of the agreement weren't disclosed.
PHILADELPHIA-The trauma programs of Hahnemann University Hospital and Medical College of Pennsylvania Hospital have been linked. Under the arrangement, each hospital will maintain its Level I trauma center, but administration of the programs will be combined. Community hospitals that become "partners in trauma" with Hahnemann and the university hospital will have access to both trauma centers for patient transfers, to a toll-free telephone line for consultation on complex or critical cases and to on-site continuing education. Last November, Hahnemann University, which operates the Philadelphia-based hospital, agreed to merge with Allegheny Health Education and Research Foundation, the Pittsburgh-based parent of Medical College of Pennsylvania Hospital (Nov. 22, 1993, p. 16).
CHAMBERSBURG, Pa.-Six central Pennsylvania hospital and physician groups have joined to develop and manage a regional HMO. Capital Health System Services, Chambersburg Hospital Health Services, Ephrata Community Hospital Foundation, Lancaster General Hospital Foundation, Reading Hospital and Medical Center, and York Hospital Foundation have formed Health Central, which has applied for an HMO license. While the groups will remain separate organizations, Health Central will manage the HMO through a board of three community members, three physicians and three healthcare organization representatives.