Hospital and health system news from across the country
Editor’s note: The following news has been compiled by Major Accounts Exchange (The MAX), health care’s leading provider of real-world intelligence for the supply chain. The MAX serves as a Supply Chain “Community” where senior-level executives can easily Find, Digest, and Act on vital business and market intelligence. For the latest news impacting the supply chains of over 1,200 IDNs and all the GPOs, visit www.uslifeline.com.
California: Enloe Medical Center completes nine-year, $175M renovation
Enloe Medical Center (Chico, CA) celebrated the end of a nine-year, $175 million expansion project. The multi-phase plan resulted in a new parking garage completed in August 2008, a five-story patient tower in November 2012, and an expanded ED in August 2014. Hospital officials are expecting a 22,000-patient increase in 2015 compared to 2014 and are counting on the expansion to ensure Enloe can serve the community for at least 20 years in the future. A park on the campus will be completed in spring 2016. Enloe Medical Center is owned by Enloe Health Systems (Chico, CA).
Illinois: BlueCross BlueShield increases spend on value-based care initiatives to $71B
BlueCross BlueShield Association (Chicago, IL) announced it has increased to more than $71 billion annually the amount of money it is spending on value-based care. Value-based care rewards better outcomes and the coordination of treatment rather than volume of medical services provided. Blue Cross and Blue Shield said it increased spending on value-based care by nine percent to more than $71 billion in 2013 from the year earlier. BCBS says it is building a variety of value-based initiatives that include ACOs, patient-centered medical homes, pay-for-performance programs, and episode-based payment programs into its contracts with doctors and hospitals.
Rhode Island: CVS to purchase Target’s pharmacy and clinic business for $1.9B
CVS Health (Woonsocket, RI) and Target Corp (Minneapolis, MN) signed a definitive agreement through which CVS Health will acquire Target’s pharmacy and clinic businesses for approximately $1.9 billion. Through the agreement, CVS Health will acquire Target’s more than 1,660 pharmacies across 47 states and operate them through a store-within-a-store format, branded as CVS/pharmacy. In addition, a CVS/pharmacy will be included in all new Target stores that offer pharmacy services. Target’s nearly 80 clinic locations will be rebranded as MinuteClinic. CVS Health will open up to 20 new clinics in Target stores within three years of the close of the transaction. The companies also plan to develop five to 10 small, flexible-format stores over a two-year period following the deal close, which will each be branded as TargetExpress and include a CVS/pharmacy. The transaction is subject to customary closing conditions, including necessary regulatory clearance. There is not yet an estimated close date for the transaction, but a release from the companies suggested it may close near the end of 2015.
Alabama: HealthSouth to acquire Reliant Hospital Partners for $730M
HealthSouth Corp (Birmingham, AL) signed a definitive agreement to buy the operations of Reliant Hospital Partners (Richardson, TX) for $730 million in cash and debt. Reliant operates 11 inpatient rehab hospitals in Texas and three inpatient locations in Massachusetts. A HealthSouth official said the acquisition complements the company’s existing facilities in Houston, Dallas-Fort Worth, and Austin markets while opening up new opportunities in Ohio and the Boston metro area. The agreement is expected to close later in 2015, subject to closing conditions and regulatory approvals.