Published: 25 January 2001
Analyst(s): Patrick J. C. Powers
Management Summary After years of little change in the local managed care market, the Dayton, Ohio, healthcare market is transforming the way providers and employers do managed care business. The local employer healthcare coalition has allied with the area's major hospital and physician network to form a physician-operated healthcare plan that is to focus on reducing healthcare costs by promoting preventive medicine. In 2000, hospital consolidation occurred in the region for the first time in a decade with the closing of Dayton's third-largest local facility, 414-bed Franciscan Medical Center. Physician consolidation was also prominent in healthcare news, with the merger of the area's two largest primary care groups. The main factor driving events on the provider side of healthcare was a renewal of spiraling healthcare and insurance cost increases after six years of relatively unchanged managed care premiums. Several of the area's major healthcare players are participating in a new managed care initiative begun on 1 January 2001 by the local business healthcare alliance, Tri-River Health Initiative. Participating hospitals and physician groups include the two-hospital Premier Health Partners, comprising Miami Valley Hospital and Good Samaritan Hospital and Health Center, The Children's Medical Center and approximately 115 of the 650 physician members of Premier Health Partners and Physicians Network. The Tri-River Health Initiative is co-sponsored by 23 local employers, including the area's largest employer, General Motors, and the Greater Dayton Area Health Information Network (GDAHIN). GDAHIN provides transaction and data sharing capabilities via an intranet for eight hospitals and nearly 2,000 physicians. Other major healthcare players in Dayton include the four-hospital Kettering Medical Center Network and the recently formed Greater Dayton Physician Partners. The local managed care market is dominated by two national health maintenance organizations...
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