APS Healthcare has added 10 shareholders in recent weeks, capitalizing on the attention generated by its formation from three alliances.
In the past, new shareholders have been rare at many alliances, including the founders of APS.
A spokeswoman for the new alliance said more additions are expected. None of the new shareholders previously belonged to competing alliances, she said.
The recent merger of American Healthcare Systems, Premier Health Alliance and SunHealth Alliance has stirred up the market. The merger created the largest hospital alliance with more than 240 shareholders and 1,700 total members. It is temporarily operating as APS Healthcare.
The three largest new shareholders are Mercy Health Systems of Cincinnati, which includes 19 hospitals; Presentation Health Systems of Sioux Falls, S.D., which includes 15 hospitals; and St. Joseph Health System of Orange, Calif., which operates nine hospitals.
The remaining new shareholders are Adventist HealthCare Mid-Atlantic, Rockville, Md.; Alegent Health, Omaha, Neb.; Atlantic Adventist HealthCare Corp., Boston; Mid-Hudson Health, Poughkeepsie, N.Y.; Kettering (Ohio) Medical Center; Pallottine Health Services, Huntington, W.Va.; and Regional Medical Center, Madisonville, Ky.
In other industry news, MedEcon Services, a Louisville, Ky.-based purchasing group, said it has formed more than 10 regional cooperatives.
Cooperatives are MedEcon's response to the growth of regional healthcare systems (Sept. 25, 1995, p. 58). Cooperatives receive MedEcon invoice prices for all products, but they also receive rebates from manufacturers in return for 100% compliance.
The most recent cooperative covers six hospitals in Connecticut, Massachusetts, Rhode Island and Vermont.
MedEcon also said it renewed an agreement with United Share Services of Tonawanda, N.Y., allowing its members access to MedEcon national purchasing contracts. The agreement expires in 2001.