A new for-profit firm created by the American Hospital Association and 20 state and local hospital associations to sell member services to hospitals will begin operations June 1.
The start-up of the new company-to be called Allied Healthcare Association Services-is the culmination of months of work. Dennis May, president of the Connecticut Hospital Association, led the development effort (March 16, p. 3).
Each association owner will contribute $10,000 for equal shares in the venture. Of that sum, $5,000 will go toward the purchase of one share of voting stock while the remaining $5,000 will be earmarked for operating capital.
The new company is organized as a limited liability company, which means it can have a maximum of 35 shareholders the first year. Richard Wade, the AHA's senior vice president for communications, said he expected at least that many state and metropolitan hospital associations would be members of the company. After the first year, the cap on the number of shareholders is lifted.
AHAS' first product will be a software service designed to deal with the year-2000 problem in information systems. The product was developed by the Connecticut Hospital Association.