Officials at 465-bed Piedmont Hospital, Atlanta, announced that the hospital is breaking off its eight-year relationship with Promina Health System, Atlanta, and cited Promina's financial challenges. The move will leave Promina with seven hospitals from once operating 13. In November 1999, five hospitals left to form WellStar Health System. When WellStar withdrew from a joint contracting network last year, Promina claimed the system owed it $9.2 million in unresolved liabilities from managed-care contracts. This year, after being warned by Georgia regulators that its risk-based contracts looked too much like insurance and beginning to lose money on some capitated contracts, Promina made the decision to drop all capitation, representing 8% of its revenue, by year-end. Reacting to Piedmont's announcement, Promina Chairman Duane Blair said Promina will "be moving forward at a rapid pace to continue our quality and patient safety initiatives." -- Patrick Reilly
Hospital to leave Atlanta's Promina system
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