Atlanta Getting Another Hospital Network?

[sman]

My opinion is current network that Piedmont WellStar HealthPlans has will get bigger if the merger occurs. Piedmont will not leave the partnership. So that's three great hospital systems for PWHP possibly for 2017.

Not so sure. I heard a rumor recently that the PW MAPD has lost quite a sum of money since they rolled out the plan for the 2014 benefit year ($35 million). Of course, I wouldn't mind them adding another hospital network and more physicians. But rumor is the network will actually get smaller and copays and such will increase to try and make up the losses.

 

[g1sdaname]

Not so sure. I heard a rumor recently that the PW MAPD has lost quite a sum of money since they rolled out the plan for the 2014 benefit year ($35 million). Of course, I wouldn't mind them adding another hospital network and more physicians. But rumor is the network will actually get smaller and copays and such will increase to try and make up the losses.

Considering that's its a new health plan it's expected they will lose money, how much? it depends on who you ask. It would not surprise me if they lose money for several years but certainly the parent hospitals Piedmont and WellStar are both willing and able to withstand the loss. Just think of the investment it took for Piedmont to build Newnan hospital and for WellStar to build Paulding hospital, they are willing to spend the money on a good investment and this is a great investment. Throw in a bigger network with Emory WellStar you've got yourself a system with a huge footprint in metro Atlanta that will be able to grab a large portion of the senior market and commercial market.

 

[sman]

Considering that's its a new health plan it's expected they will lose money, how much? it depends on who you ask. It would not surprise me if they lose money for several years but certainly the parent hospitals Piedmont and WellStar are both willing and able to withstand the loss. Just think of the investment it took for Piedmont to build Newnan hospital and for WellStar to build Paulding hospital, they are willing to spend the money on a good investment and this is a great investment. Throw in a bigger network with Emory WellStar you've got yourself a system with a huge footprint in metro Atlanta that will be able to grab a large portion of the senior market and commercial market.

I didn't say they weren't willing to spend money. But they won't bleed money for more than a few years before making some drastic changes. And if those figures are accurate, you can count on some significant changes to their MAPD for 2016.

 

[somarco]

Considering that's its a new health plan it's expected they will lose money

Apparently you haven't been following the news for the last few years.

Solyndra and health care co-ops.