Business Roundup: Geisinger, AtlantiCare Finalize Acquisition

Some major healthcare systems, including Lifepoint, Tenet, and Geisinger have made recent announcements about mergers, acquisitions, and partnerships.

Nearly two years after signing a letter of intent, Geisinger Health System has finalized its acquisition of AtlantiCare, an integrated health system based in Atlantic City, NJ.

The acquisition took effect on Oct. 1, shortly after the deal cleared regulatory review by state officials.

"This is one of the most important things to create a sustainable AtlantiCare and one that will have the ability to be successful in the new world of the Affordable Care act and new value-based models," AtlantiCare President/CEO David Tilton told reporters after a signing ceremony at AtlantiCare.

"The innovations and the change that we will see in healthcare here and across the nation are really a result of changing consumer views about healthcare, the Affordable Care Act, and its impact on healthcare," Tilton said. "What we are trying to do is create those models and those payment systems that will be appropriate for the consumer in the future. We have a partner now that has a proven track record in doing just that."

Tilton said Geisinger's "proven care models" have found traction at AtlantiCare, the 2009 winner of the Malcolm Baldrige Award. AtlantiCare operates an accountable care organization serving about 40,000 people, and is participating in the Medicare Shared Savings Program.

"We're bringing them into both our inpatient settings and our ambulatory settings so that our physicians can practice according to these proven models that have been customized for AtlantiCare and the way we practice in Southeast and New Jersey, and the needs of our patients here locally," Tilton said.

Geisinger CEO and President David Feinberg, MD, said the health systems share a commitment to deploy evidence-based medicine programs, enhance capabilities and clinical services, optimize the use of the electronic health record and clinical informatics, and implement population health management and value-based payment models. He said the collaboration between the two systems began about nine months before Thursday's signing ceremony.

"The results are outstanding. We've seen decreased utilization of unnecessary ER visits, decreased hospital admissions," he said. "The things that Geisinger is known for we're really excited to bring to this platform in Atlantic City."

Baptist Health South Florida, Bethesda Health to Merge
Coral Gables-based Baptist Health South Florida and Bethesda Health in Boynton Beach have agreed to merge, with a transition period culminating on Sept. 30, 2017.

In a joint media release, the two health systems said they would use the two-year transition period to "enhance effectiveness in their operations and share best practices to address the ongoing evolution of the healthcare industry."

"The challenge of healthcare reform not only requires better access to care for all, but also the improvement of efficiencies, quality, and outcomes. To survive the evolution of healthcare in our country today, we must be progressive and adjust our operations so that we remain accountable and stable," Baptist Health President and CEO Brian E. Keeley said in a letter to employees announcing the deal.

"By partnering with Bethesda Health, together we can develop and share best practices that can only enhance our commitment to our patients, employees, physicians and the communities we serve."

Roger L. Kirk, president and CEO of Bethesda Health, said in media release that the changing nature of healthcare makes it "essential to forge partnerships that can ensure our organizations remain on the leading edge as providers of quality medical care. As not-for-profit hospitals, we share similar missions and a common vision for improving the health of our respective communities that can be significantly strengthened by this affiliation."

Bethesda Health includes two hospitals, 670 physicians and more than 2,500 employees.

ACO Created for North Texas
An accountable care organization affiliation has been formed between UT Southwestern Clinically Affiliated Physicians (UTSCAP) and Genesis Accountable Physician Network (GAPN) to serve a 400-square-mile area across North Texas.

The UT Southwestern Accountable Care Network (UTSACN) will align primary and specialty care physicians, hospitals, and payers to provide better access to care, better clinical quality, and control costs. The network is made up of faculty physicians at UT Southwestern Medical Center and independent physicians practicing in Dallas County and surrounding areas, UT Southwestern said.

"This new network between UT Southwestern faculty and independent physicians reflects our commitment to a common standard of care that is of the highest quality," Bruce Meyer, MD, executive vice president for health system affairs at UT Southwestern, said in prepared remarks.

"For patients, the network offers more choices and greater access to world-class medical services closer to their homes, ranging from primary care to the most complex specialty care. For physicians, the clinical integration achieved through the network enables them to have advanced analytics and comprehensive patient information at their fingertips to better manage care."

The ACO will hold value-based contracts and fee-for-service contracts, and will rely on the combined physician leadership of GAPN and UTSW, using input from community and faculty physicians to create effective practice transformation.

"To be successful in the current environment of health care, physicians need to lean in to change. That is, embrace and implement clinical integration, population health management, and aligned reimbursement models," said Jim Walton, DO, MBA, president/CEO of Genesis Physicians Group, which includes about 900 specialists, and 450 primary care physicians.

"Physicians who don't make changes now or in the near future may run the risk of becoming marginalized by the shifting payment system," said Walton who will serve as president of the ACO.

The network links community physicians with the faculty practice and resources of UT Southwestern. Members will have access to tools for population risk stratification, predictive modeling, sophisticated disease registries, point-of-care management, automated appointment reminders, patient-centered medical home expertise, and practice-level quality and utilization performance reports with peer comparisons.

UT Southwestern has a faculty of more than 2,700 providing care in 40 specialties to about 92,000 hospitalized patients and oversee approximately 2.1 million outpatient visits a year.

LifePoint to Buy St. Francis (GA) Hospital
LifePoint Health says it will purchase St. Francis Hospital, a 376-bed not-for-profit hospital in Columbus, GA.

Financial terms were not disclosed for the deal, which must first clear state regulatory hurdles. St. Francis will convert to for-profit status when the deal is finalized, which is expected by year's end.

"As part of LifePoint, St. Francis will have access to the support and resources needed to not only move beyond our previous financial challenges, but to strengthen our operations and advance how we care for our communities in the future," Richard Y. Bradley, chairman of the St. Francis Hospital Board of Trustees said in prepared remarks.

Under the deal, LifePoint has agreed to preserve local services and St. Francis' charitable mission. No layoffs are planned, and the hospital's 2,800 employees will be rehired when the transition is completed, after a pre-employment screening. LifePoint has also agreed to pay off St. Francis' outstanding debts.

Baptist Health (AL), Tenet Form JV
Dallas-based Tenet Healthcare Corp. and Birmingham, AL-based Baptist Health System have formed a joint venture to own and operate healthcare facilities in central Alabama, the two systems have announced.

The joint venture includes all Baptist Health System hospitals, Tenet's Brookwood Medical Center, and each organization's related businesses. Under the joint venture arrangement, Tenet is the majority partner and will manage the network's operations.

The JV unites Baptist Health System's four hospitals—Citizens Baptist Medical Center, Princeton Baptist Medical Center, Shelby Baptist Medical Center and Walker Baptist Medical Center—with Brookwood Medical Center. Together, the new system has more than 1,700 licensed beds, nine outpatient centers, 68 physician clinics delivering primary and specialty care, more than 7,000 employees and approximately 1,500 affiliated physicians.

Keith Parrott, the former CEO of Baptist, was named CEO of the JV. "This new partnership will strengthen our collective efforts throughout the region while also preserving and supporting the Baptist tradition and our faith-based approach to quality healthcare," Parrott said.