INDIANAPOLIS-Methodist Health Group, which includes 928-bed Methodist Hospital in Indianapolis, will become the 98th VHA shareholder. The group is merging with a VHA member, 611-bed Indiana University Medical Center. It also includes a physician organization and a managed-care plan. Previously, Methodist wasn't a member of a national alliance or group purchasing organization. VHA, based in Irving, Texas, represents about 1,100 acute-care hospitals. Shareholders own a stake in the organization, while other hospitals are members entitled to use its services. "VHA is a good avenue for us to explore additional relationships with other VHA organizations in Indiana," said Bill Loveday, Methodist Health Group president. The alliance's emphasis on serving integrated networks also was attractive, Loveday said.
CINCINNATI-Two Cincinnati independent practice associations recently merged to create a physician-owned management services organization called Medica, with 365 physicians. The deal combines Midwest Physician Services, a 100-member IPA, and Patient's Choice, a 265-member IPA. President and Chief Executive Officer Bruce Henderson said Medica is an alternative to hospital-owned practices and intends to implement data systems and protocols to assume risk by 1997.