The boards of five of South Carolina’s largest health systems have approved the formation of a healthcare collaborative to drive down healthcare costs.
The founding members of Initiant Healthcare Collaborative include: Self Regional Healthcare, (Greenwood); Greenville Health System (Greenville); McLeod Health (Florence); MUSC Health (Charleston); and Palmetto Health (Columbia).
CEOs of these leading healthcare systems wanted to find ways to create synergies among the organizations while remaining independent. Legislation and payment reform introduced in the Affordable Care Act have created an environment that begins to compensate hospitals and physicians for the value of the services provided rather than solely on the traditional fee-for-service model. This shift has accelerated efforts to reduce costs; explore new ways to optimize access to health services; and to enhance health and wellness in the communities we serve.
“When health systems collaborate in areas that save patients and businesses money, and continue to improve and focus on areas of safety and quality, everyone benefits,” said Jim Pfeiffer, President and CEO of Self Regional Healthcare.
Several hospital systems around the country have created similar collaboratives, including BJC in Missouri, Stratus in Georgia, and the Iowa Healthcare Consortium in Des Moines.
Initiant Health Collaborative is a limited liability company owned by the founding members. Other hospitals can be added to the collaborative over time. These health systems can work together for common goals, yet remain independent, and will continue to serve patients in their respective communities. Working together allows for economies of scale in areas including the following:
— Purchasing of equipment, supplies, and services — Sharing health system administrative and clinical support functions — Accessing critical competencies not currently available or affordable to a single member
“This collaboration will provide the scope and scale to make a significant positive impact on healthcare across the state, while allowing each hospital to maintain autonomy and service in their local communities,” Pfeiffer said.