Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, May 6, 1994 TAG: 9405060087
SECTION: BUSINESS PAGE: A-11 EDITION: METRO
SOURCE: By LAURA WILLIAMSON STAFF WRITER
DATELINE: LENGTH: Medium
Neither Blue Cross, a Richmond-based health insurer, nor Carilion, parent of Roanoke Memorial and Community hospitals, would release details of what would become a joint venture of the two companies if it goes through. Carilion Senior Vice President Lucas Snipes said the companies will release a joint statement once a deal has been struck, perhaps in about two weeks.
Blue Cross has been negotiating with hospital companies all over the state to establish joint ventures in managed care, according to spokeswoman Vanessa Scherzer. One partnership with Riverside Health System, a group of hospitals in the Newport News area, was created in 1992.
Peninsula Health Care Inc., a partnership between the Riverside hospital group and Blue Cross, provides health care to 6,000 people through Health Keepers, a health maintenance organization. Riverside provides the health services and Blue Cross administers the HMO.
HMOs are one form of managed care. Preferred provider networks are another. Managed care systems create networks of doctors who agree to fee schedules or fixed salaries to hold down costs. In return, the doctors are guaranteed a larger number of patients.
Carilion has been running its own managed care division, called Carilion Health Plans, for 18 months, Snipes said. In addition to doctors' services, Carilion offers hospital and psychiatric services, home health care, outpatient laboratory services and medical equipment as part of the packages it sells to employers and insurance companies.
Carilion Health Plans cover 53,000 people in Western Virginia through a variety of managed care packages.
Snipes would not comment on how a partnership with Blue Cross would benefit Carilion.
"That's what we will describe when we go public, as to why we need to do that," he said.
Blue Cross said earlier this week it would try to build the strength and size of the company through a variety of acquisitions, joint ventures and affiliations. It also announced plans to expand its managed care programs and to develop regional hospital and physician alliances around the state.
by CNB