Quorum Health Group, Nashville, Tenn., completed the purchase of 418-bed Lutheran Hospital of Indiana in Fort Wayne. Terms were not disclosed. Quorum now owns 14 hospitals.
Lakeland Medical Center in Elkhorn, Wis., joined the Aurora Health Care system after Walworth County formed a not-for-profit corporation to run it. The 99-bed hospital has been county-owned since its founding in 1917. A shrinking profit margin at Lakeland drove the county board to examine alternative governance systems in 1994. As of Aug. 1, the hospital essentially has merged with Aurora, although it will be overseen by a local board of directors. In the transaction, Aurora agreed to take on about $4 million in long-term debt at the hospital. The Aurora system, based in Milwaukee, now includes nine hospitals, 17 medical groups and several clinics in eastern Wisconsin from Green Bay to Kenosha. Lakeland earned $254,000 on revenues of $35 million in 1994. Its assets were valued at $19.3 million.
Stockholders at Tufts Associated Health Plans in Waltham, Mass., approved the spinoff of ManagedComp, Tufts' managed-care workers' compensation division, as an independent company. Tufts officials said ManagedComp experienced "phenomenal growth" by applying managed-care principles to the workers' compensation market. The spinoff will give ManagedComp access to capital for future growth and allow both companies to focus on their core businesses, officials said. ManagedComp, which began operations in 1989, services about 700 employers covering more than 90,000 workers in 16 states. Its 1995 premium volume is estimated at $125 million, up from $68 million in 1993.
NES Government Services, a division of NES Healthcare Services, has been awarded a contract to provide family practice physicians for clinic appointments and on-call services to as many as 38 U.S. Army medical facilities. The contract has one base year and two option years. The amount paid under the contract depends on how many physicians are provided, but the pact could bring $5 million to $7 million per year. NES Government Services is based in Virginia Beach, Va.
FPA Medical Management acquired Arizona Managed Care Services and its affiliated independent practice association in the Phoenix area. The purchase includes three clinic locations staffed by nine primary-care physicians and an IPA with 50 primary-care doctors that service 7,000 HMO enrollees under full-risk capitation. Arizona Managed Care Services also has an administrative services contract with an IPA of 45 primary-care physicians, covering 10,000 individuals. FPA Chief Executive Officer Seth Flam, M.D., said the number of HMO enrollees serviced by FPA grew almost 65% from March through May 1995. San Diego-based FPA covers almost 60,000 individuals and expects to reach 100,000 by the end of the year.
Most U.S. hospitals are complying with a nationwide smoking ban, researchers at the University of Missouri said. More than 88% of hospitals studied are abiding by the ban, implemented in 1992 by the Joint Commission on Accreditation of Healthcare Organizations. "If the success of this ban extends beyond hospital walls in the form of individual behavioral changes, we may have identified an intervention strategy that can be implemented easily and inexpensively," said Daniel Longo, associate professor of family and community medicine at the university's school of medicine. "This intervention could yield tremendous savings in lives, productivity and medical expenditures." Of hospitals surveyed, 86% complied with a "smoking exception" standard, which only permits smoking for terminally ill patients or others approved on a per-case basis. University researchers studied 1992 and 1993 data from 3,327 JCAHO-accredited hospitals. Results of the study were published in the Aug. 9 issue of the Journal of the American Medical Association.