Published: 21 December 2000
Analyst(s): Patrick J. C. Powers
Management Summary The dynamics of the managed care market in Little Rock, Arkansas have remained largely unchanged during the past several years. The market is split between two alliances of providers and payers: o Baptist Health (Baptist), with three hospitals in the Little Rock market and 41 percent share of annual hospital discharges, is aligned with Arkansas Blue Cross and Blue Shield (BC/BS). Baptist and Arkansas BC/BS are co-owners of the state's largest health maintenance organization (HMO), HMO Partners, which markets Health Advantage HMO with a statewide enrollment of 178,000 members. o St. Vincent Health System (St. Vincent), with five local hospitals and nearly 27 percent share of annual hospital discharges, is the largest local hospital system in the provider network of QualChoice of Arkansas (QCA) Health Plan with 85,000 statewide HMO members. QCA Health Plan is owned by the University of Arkansas for Medical Sciences (UAMS) Medical Center, with 16 percent of local annual hospital discharges, and Arkansas Children's Hospital, with 9 percent of local annual hospital discharges. Competition for market share between the two healthcare alliances is strong, with only modest participation in both networks by UAMS Medical Center and Arkansas Children's Hospital. St. Vincent is not a member of the provider network for Baptist's Health Advantage HMO, and Baptist is not a member of the provider network for QCA Health Plan. St. Vincent's market share is stronger locally than statewide; Baptist has developed an extensive statewide network including 80 statewide Baptist hospitals, outpatient centers and long-term care facilities. St. Vincent's response to Baptist's managed care partnership with Arkansas BC/BS has been to join NovaSys Health Network, a statewide provider contracting network of 73 hospitals and 3,000 physicians. Total HMO enrollment in Little Rock is approximately 28 percent of the local population; preferred provider organization...
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