Health systems based in Pennsylvania, New Jersey, and New York have formed an alliance to capitalize on economies of scale while maintaining their independence and build expertise in population health management.
The new consortium is the latest in a series of non-merger alliances driven by the changing health care landscape, but founders of AllSpire Health Partners argue that it will be the largest such alliance in the United States. The combined revenue of the seven participating organizations totals $10.5 billion, and they serve six million customers.
The seven participating health systems—which are comprised of about 30 hospitals—are:
- Atlantic Health System (Morristown, N.J.);
- Hackensack University Health Network (N.J.);
- Lancaster General Health (Pa.);
- Lehigh Valley Health Netowrk (Allentown, Pa.);
- Meridian Health (Neptune, N.J.);
- Reading Health System (Pa.); and
- WellSpan Health (York, Pa.).
"I think that we recognize that we're at the forefront of what will probably be a growing trend," Karen Kessler, chair of the boards of trustees at Atlantic and AllSpire says, adding, "Those that try to go it alone are really at a disadvantage."
Each of the systems will contribute a seven figure amount to a new limited liability company, Kessler says.
The systems will first focus on managing health benefits of their 32,000 employees, according to Modern Healthcare. The effort will act as "training wheels" to obtain expertise in population health management, says Ron Swinfard, Lehigh's president and CEO (Livio, New Jersey Star-Ledger, 9/18; Jones, Reuters, 9/19; Kutscher, Modern Healthcare, 9/19 [subscription required]).
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