NORTH ADAMS, Mass.-North Adams Regional Hospital plans to reduce its annual expenses by at least $1.9 million and explore a regional affiliation with a larger healthcare provider in an attempt to remain viable in the state's quickening managed-care climate. The hospital's board faced a choice between "securing a future for this community hospital or risking closure of the hospital," said Chairman Howard Brookner. A high cost structure at the hospital threatened to make it unattractive to managed-care plans at a time when such business represents an increasing proportion of revenues. The board said it was seeking an affiliation rather than a merger because it believed the hospital could reduce costs without giving up local control of decisionmaking on hospital services. North Adams lost $245,000 in 1993, $76,000 in 1992 and $806,000 in 1991, according to HCIA, a Baltimore-based healthcare information company. Net patient revenues ranged from $30 million in 1991 to $33 million in 1993.
MANAHAWKIN, N.J.-Southern Ocean Country Hospital in Manahawkin and Deborah Heart and Lung Center of Browns Mills, N.J., have signed an affiliation agreement to establish a cardiac-care "continuum" in Ocean County. Under the agreement, Deborah will offer priority status to cardiac patients referred by Southern Ocean physicians and offer affiliate medical staff privileges to qualified Southern Ocean doctors. Deborah is a teaching hospital that specializes in heart, lung and vascular diseases. Southern Ocean is a community-based acute-care hospital.
BLOOMFIELD, Conn.-Prime Health, a new physician group practice management company, obtained several million dollars in financing and expects to sign its first contracts in a few months, said Mark Buchanan, M.D., the company's vice president of medical affairs. He said Prime Health is marketing in the Northeast, as far south as North Carolina. The company's venture capital partners are InterWest Partners, Dallas; Marquette Venture Partners, Deerfield, Ill.; and Delphi Bioventures, Menlo Park, Calif.