MARIETTA, Okla.-Love County Health Center has signed a management agreement with Integris Health, the Oklahoma City-based parent company of Baptist Medical Center. Under the agreement, the 20-bed county hospital will pay Integris for assistance with financial and administrative functions and for representing the hospital in obtaining managed-care contracts.
AUSTIN, Texas-MedCath, a Charlotte, N.C.-based firm, has formed a joint venture to build a $27.5-million heart hospital. The investor-owned chain is planning a 60-bed facility with 18 cardiologists and 10 vascular and cardiovascular surgeons in Austin. MedCath has opened a heart hospital in McAllen, Texas, and has two others planned for Little Rock, Ark., and Tucson, Ariz. The Austin facility is set to open in the fall of 1997.
KANSAS CITY, Kan.-The University of Kansas Medical Center will not fill 210 vacant positions to save money during a period of financial pressure. Executive Vice Chancellor Donald Hagen held a full-staff meeting in February to contradict rumors that a massive layoff was imminent. Instead the hospital will attempt to reduce costs through attrition and postpone some scheduled remodeling projects. There will be no layoffs, but some 210 hospital positions will not be filled, Hagen said. The measures should save $5 million a year. The University of Kansas Medical Center is the major teaching institution in Kansas. The entire complex employs 5,500 people, of whom 2,445 work at the hospital. Irene Cumming, the hospital's new chief executive officer, said: "Our revenue is continuing to decline as hospital utilization is declining. Our budget was overestimating for this fiscal year the revenues by approximately $10 million to $12 million." Part of the hospital's problem arises from a perceived obligation to treat the indigent. KU loses about $12 million per year on medically uninsured patients, Cumming said. Legally, KU is not required to serve these patients. But as a state-owned hospital, the public expects it to fill that role, she said. The state does not subsidize the hospital, so it must use its own resources to cover the costs of the medically uninsured.