Nine Baltimore-area hospitals, including the two hospitals in the Johns Hopkins Health System, are forming an alliance that will provide managed care and direct contracting with self-insured employers.
Atlantic Health, headquartered in Baltimore, will stretch throughout the five counties surrounding the city. Combined, the hospitals have more than 4,400 affiliated physicians and are licensed for a total of more than 3,800 beds.
The nine hospitals' operating revenues totaled more than $1.3 billion in 1994.
The alliance hopes to offer a capitated managed-care product to HMOs and self-insured employers.
Such a product would be rare in Maryland's rate-regulated hospital payment system that usually results in HMOs paying for inpatient care on a cost basis, even when physicians are paid capitated rates.
In its first year of operation, Atlantic Health's managed-care plan hopes to cover 80,000 enrollees, said Lori Anderson, acting chief operating officer.
Anderson said the alliance also plans, through insurers and HMOs, to provide Medicaid and Medicare managed-care services.
Other hospitals in the network are Carroll County General Hospital, Howard County General Hospital, North Arundel Hospital, Sinai Hospital of Baltimore, St. Joseph Medical Center and the two hospitals in the Upper Chesapeake Health System.