Two Roman Catholic healthcare systems are attempting to weave together a statewide managed-care network that could include nearly 40 not-for-profit hospitals in Louisiana.
Six hospitals owned by Baton Rouge, La.-based Franciscan Missionaries of Our Lady Health System and Houston-based Sisters of Charity of the Incarnate Word Health Care System said last week the initial focus of their network will be to seek managed-care contracts.
Financial terms of the network weren't disclosed, but executives said more than 30 other not-for-profit hospitals eventually may affiliate with the venture.
"This collaboration ensures the success of physicians, hospitals and employees in their efforts to continue to meet the needs of the communities we serve," said John Finan, president of Franciscan.
In Louisiana, Franciscan operates Our Lady of Lake Regional Medical Center in Baton Rouge; Our Lady of Lourdes Regional Medical Center in Lafayette; and St. Francis Medical Center in Monroe. Sisters of Charity owns three hospitals in Louisiana: St. Frances Cabrini Hospital in Alexandria; Schumpert Medical Center in Shreveport; and St. Patrick Hospital in Lake Charles.
"The network has these six core facilities, and it brings together most of the geographic markets," said Jim Pittman, spokesman for Sisters of Charity's Louisiana facilities.
The managed-care network eventually could lead the hospitals to even closer ties. They aren't ruling out eventual mergers or joint ventures among hospitals and related providers.
But executives acknowledge the network's primary concern is to tap the New Orleans market. "The sponsors aren't ruling out affiliating or partnering with other not-for-profit acute-care facilities, especially in New Orleans, where neither of our main systems has a presence," Pittman said.
Through their existing affiliations and relationships with more than 30 other Louisiana not-for-profit community hospitals and their physicians, Franciscan and Sisters of Charity executives intend to invite other not-for-profit hospitals that "share their principles and values," a statement said. A name for the new venture hasn't been selected.