Gartner Research

Indianapolis, Indiana, Healthcare Market Overview: May 2000

Published: 26 May 2000

ID: G0088777

Analyst(s): Patrick J. C. Powers

Summary

Management Summary Unlike other major metropolitan areas where integrated delivery system (IDS) formation is well advanced, consolidation of the Indianapolis healthcare market is still moving slowly and the final configuration of local alliances is far from determined. All major hospital systems are implementing regional strategies of hospital acquisitions and affiliations to ensure a constant flow of patient referrals from affiliated rural communities. Managed care penetration inches forward, with new HMOs struggling to break into the market while preferred provider organization (PPO) formation and membership continues to lead the way. Local hospital systems are divesting themselves of owned physician practices and developing joint ventures with physicians after spending several years following the national trend of acquiring physician groups. Indianapolis is a provider-driven healthcare market that is home to four competing hospital systems, each with three hospitals: Clarian Health, 24 percent of inpatient bed capacity; St. Vincent Hospitals and Health Services, 14 percent of inpatient bed capacity; Community Hospitals of Indianapolis, 14 percent of inpatient bed capacity; and St. Francis Hospital and Health Centers, 9 percent of inpatient bed capacity. Three years after Clarian Health was formed from the merger of Methodist Hospital of Indianapolis with Indiana University Medical Center, it is wrestling with the difficulty of integrating clinical physicians with teaching physicians. The outcome of Clarian Health's efforts at consolidating all cardiology services on one campus may determine whether Indiana's largest IDS can deliver on its original promise that the merger would provide integrated, high quality and cost-efficient healthcare. Last year, the celebrated 3-year old merger of the University of California at San Francisco Medical Center and Stanford University Hospital fell apart largely because of the IDS' inability to integrate the...

Table Of Contents
  • Management Summary
  • Legislative Initiatives
    • Medicaid
    • Medicare
  • Integrated Delivery Systems
    • Clarian Health
    • Community Hospitals of Indianapolis
    • Central Indiana Health System
  • Managed Care Organizations
  • Providers
  • MSA Snapshot
  • Managed Care Organizations
  • Statewide Medicaid Managed Care Organizations
  • Statewide Medicare Managed Care Organizations
  • Hospitals
  • Acronym Key

©2019 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client