Wake Forest, WakeMed, Vidant form non-ownership alliance

Three health systems in North Carolina have formed a non-ownership alliance that will allow them to share back-office functions while still maintaining their independence.

The deal is the latest in a string of similar transactions occurring across the country, allowing systems to meet the goals and challenges of population health management without formally merging. The partners can take advantage of joint purchasing—such as for costly technology upgrades and other supplies—and also develop data and analytics to help reduce the cost of delivering care.

In North Carolina, Greenville-based Vidant Health, which has eight hospitals according to its website, is forming a shared-services operating company with Wake Forest Baptist Medical Center, Winston-Salem, and WakeMed Health & Hospitals, Raleigh, which have three hospitals apiece.

The yet-unnamed company does not plan to make any acquisitions, a news release said. It will offer services such as supply chain management, information technology infrastructure and other tools for managing clinical care more efficiently. The model also sets the groundwork for developing accountable care organizations and coordinating care for patients.

Like many systems across the country, the three North Carolina providers have struggled to maintain inpatient volume as more care is delivered in outpatient settings. At the same time, they've been making costly technology upgrades and have seen their expenses outpace revenue.

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