The partnership will create a new board to oversee and coordinate the operations of both systems, according to internal messages sent to Community stakeholders. Community Health CEO Bryan Mills will be the CEO of the new joint-operating entity.
The health care systems would not provide details, but said the announcement would place "Indianapolis in the best position for health care reform."
Anthem Blue Cross and Blue Shield has selected Community Health Network to be the “exclusive provider” for a new kind of health insurance plan—a sharp departure from Anthem’s typical strategy of offering the broadest network of hospitals and doctors.
In the era of health care reform, hospitals will face two new challenges: They will need to run higher-volume, lower-margin businesses, and they’ll be on the hook financially for what patients do even when they’re not receiving health care. Community Health Network’s new partnership with Walgreens’ Take Care Clinics is designed to help address both issues.
A little extra Medicare money will flow to suburban hospitals in the Indianapolis area, based on recent patient satisfaction scores. But hospitals in the core of Indianapolis—and hospitals that do significant amounts of teaching medical students—may take a hit.
As St. Vincent Health has nearly doubled the number of physicians it employs over the past two years, the losses on those practices have mounted. And the same thing is happening at all the major Indianapolis hospital systems, as all have spent the past four years aggressively acquiring physician practices.
The merger of Kokomo’s Howard Regional Health System into Indianapolis-based Community Health Network received final approval Tuesday night.
Community Health Network and Johnson Memorial Hospital plan to spend $14 million to build a medical office building and outpatient center in Bargersville. The 70,000-square-foot facility is scheduled to be completed in mid-2013.
Community Health Network plans to move its inpatient rehabilitation facility from its east-side hospital to a new $23 million, 60-bed facility in the Castleton neighborhood.
Indianapolis-based Westview Hospital might be on the hook for $160,000 because its advisers used a fax machine to tell Lehman Brothers it was canceling a financial agreement.
As part of its agreement to add Westview Hospital to its system, Community Health Network will assume $10 million in debt, spend $7.5 million on upgrades, and help open an outpatient center in Speedway, the two hospitals announced Tuesday morning.