Three Maryland systems name new alliance, hire CEO for subsidiary

Three Maryland-based health systems announced Monday that they've officially named a new union they first discussed publicly in late 2013; the group now will be known as the Trivergent Health Alliance. The new organization also named Raymond Grahe as CEO of Trivergent Health Alliance MSO, the management services organization that is a subsidiary of the alliance.

The three systems first announced in October of last year that they had signed a letter of intent to begin exploring opportunities for collaboration on initiatives related to healthcare reform, including improved care, reduced costs and a focus on population health management. That announcement came following a feasibility study conducted by the Berkeley Research Group in June that evaluated a possible affiliation. The health systems' governing boards then gave the go-ahead in September for each of their CEOs to pursue an alliance.

The model for the alliance originated from discussions between CEOs at Frederick (Md.) Regional Health System; Meritus Health, Hagerstown, Md.; and Western Maryland Health System, Cumberland, Md. The purpose of the alliance and its management service organization is to increase operational efficiencies, reduce costs, and enhance quality of care across the systems, Grahe said. That will include efforts focused on human resources, information technology, laboratory services, materials management, pharmacy services and revenue cycle, according to a release.

“The concept of hospitals pooling resources to enhance the quality of care provided to the citizens they serve is an exciting new business model,” Grahe said in the release. “All three hospitals are well-positioned to accept the challenges posed by the Affordable Care Act and I look forward to working with my colleagues to create innovative healthcare solutions for our region.”

Grahe, senior VP and CFO of Meritus Health, was chosen to lead the alliance’s management services subsidiary following a national search. He first joined the system’s Washington County Hospital in 1979 and was involved in the planning and development of its replacement facility, Meritus Medical Center, opened in December 2010.

“Ray has been a mainstay of healthcare provision in mid-Maryland for the past 35 years,” Barry Ronan, president and CEO of Western Maryland Health System and Trivergent board member, said in the release. “His expertise in operations management and his commitment to the health of the citizens we serve make him the best choice for leading this new cooperative venture.”

Those individuals employed by the departments on which the alliance and its subsidiary organization will focus will become employees of the Trivergent Heath Alliance management service organization in early July. Grahe also will take on his new role at that time. These changes are not expected to affect patient care or outpatient services, according to the systems.

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