A partnership formed by some of the largest healthcare organizations in Arkansas expects to save its members millions of dollars, according to Arkansas Business.
The Partnership for a Healthy Arkansas, a shared services organization formed late last year, includes Arkansas Blue Cross Blue Shield, Baptist Health and the University of Arkansas for Medical Sciences, all located in Little Rock, St. Bernards Healthcare in Jonesboro and Washington Regional Medical System in Fayetteville.
Shared service organizations are becoming more popular across the country as hospitals and other care providers attempt to cut costs by sharing certain services, such as human resources and information technology.
"[Healthcare providers] have all these redundant costs sitting in each facility," Pricewaterhousecoopers strategy consultant Anil Kaul told Arkansas Business. "I think a natural thing for hospitals to do is say, 'Hey, can I just share between facilities?'"
The Partnership for a Health Arkansas aims to reduce operating expenses for each organization by 1 to 2 percent, according to the article. The PHA cited potential cost saving initiatives that included combining IT services and customer call centers, as well as sharing expensive medical equipment.
"The very significant changes in laws and regulations have created a vastly different environment which requires payers and providers to work together in order to succeed," BCBS spokeswoman Max Greenwood told Arkansas Business. "Additionally, public programs are changing incentives for providers to that they are encouraged to work together and also to work with payers to redefine value in the delivery and financing of healthcare."
Savings generated by the SSO are expected to be used to reduce the cost of healthcare for patients and to buy equipment for hospitals, according to PHA chairman and Washington Regional President and CEO Bill Bradley.
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