Advantage Health, a troubled New Orleans managed-care organization, last week sold its profitable PPO to MultiPlan, a national PPO based in New York. Terms were not disclosed.
Advantage Health's PPO has more than 100,000 enrollees in Louisiana. Its network includes 105 hospitals and 8,000 physicians.
Advantage Health's three hospital-system owners are shutting down the organization's money-losing HMO this spring after sinking nearly $73 million into the venture since it began operations in 1994 (Jan. 25, p. 12).
Advantage Health is owned by Franciscan Missionaries of Our Lady Health System, based in Baton Rouge, La.; Sisters of Charity of the Incarnate Word Healthcare System, based in Houston; and Touro Infirmary, a stand-alone hospital in New Orleans.
MultiPlan has been on a buying binge over the past two years, acquiring PPOs serving 10 states.