An alliance of 15 hospitals in southwest Indiana and southeast Illinois was formed last week to create joint ventures and managed-care plans in the rural area.
With the potential to tap into a 22-county market of 600,000 people, Genesis Health Alliance opens for business this month. It initially hopes to reach the area's small employers and form managed-care products for businesses of up to 50 employees.
"We're creating a community-based delivery network to develop managed-care products that keep low-cost care at home and in the local communities," said Richard Breon, chairman of the alliance and president and chief executive officer of 575-bed St. Mary's Medical Center of Evansville (Ind.).
The alliance's 30-member board includes a hospital executive and a physician from each hospital. Rather than feed a tertiary-care center, Genesis hopes to keep patients at the community hospitals.
"The managed-care penetration in these areas is near zero," Breon said. "We want to go after small employers and then larger, self-insured businesses."
The alliance's $150,000 budget consists of a $10,000 annual contribution from each facility for the first three years. "We want to be self-funded after that," Breon said
With more than 1,800 acute-care beds, member hospitals have annual admissions of 54,000.
The hospitals involved are: St. Mary's; Richland Memorial Hospital, Olney, Ill.; Wirth Osteopathic Hospital, Oakland City, Ind.; Hamilton Memorial Hospital District, McLeansboro, Ill.; White County Hospital, Carmi, Ill.; Good Samaritan Hospital, Vincennes, Ind.; Warrick Hospital, Boonville, Ind.; St. Joseph's Hospital, Huntingburg, Ind.; Daviess County Hospital, Washington, Ind.; Ferrell Hospital, Eldorado, Ill.; Gibson General Hospital, Princeton, Ind.; Perry County Memorial Hospital, Tell City, Ind.; Harrisburg (Ill.) Medical Center; Lawrence County Memorial Hospital, Lawrenceville, Ill.; and Memorial Hospital and Health Care Center, Jasper, Ind.