Four systems develop regionally organized HMO

Plans to establish HealthPlus HMO, Inc.--a joint venture of the Sisters of St. Francis Health Services, Ancilla Systems, Daughters of Charity Health Systems-East Central, and Holy Cross Health System--began in 1984 with a feasibility study to assess the potential for an HMO in Indiana. Goals set by the four systems included protecting and expanding hospitals' market share and physicians' patient bases; establishing local HMO ownership; and providing health education, preventive care, and comprehensive treatment at affordable costs. During the organizational phase, participants created a 12-member board of directors with three representatives from each system, selected the name HealthPlus, and contracted with a management company to direct the HMO's planning and development phases. HealthPlus adopted a regional organizational structure, which allows financial risk to be shared among three regions, and a primary care physician model for the delivery of services. As of January 1987, the joint venture had 16 participating hospitals, 345 primary care physicians, more than 1,000 consulting specialists, and a membership of 13,100. HealthPlus now offers a triple-option product in partnership with a preferred provider organization and an insurance carrier and has developed non-health-related products with the insurance carrier as well.