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Nebraska Hospitals Seek to Form Cost-Saving Network

Nine Nebraska hospitals have agreed to form a provider network with the aim of reducing costs, according to an Omaha World-Herald report.

The network would also give its members more of a competitive edge against Omaha, Neb.-based Alegent Creighton Health, which is operated by Englewood, Colo.-based Catholic Health Initiatives, according to the report.

The nine independent hospitals involved are Bryan Health in Lincoln, Columbus Community Hospital in Columbus, Faith Regional Health Services in Norfolk, Fremont Area Medical Center in Fremont, Great Plains Regional Medical Center in North Platte, Mary Lanning Healthcare in Hastings, Nebraska Medical Center in Omaha, Methodist Health System in Omaha and Regional West Health Services in Scottsbluff, according to the report.

Nebraska Medical Center President and CEO Glenn Fosdick told the World-Herald all nine hospitals have signed letters of intent to form a board to govern the network, and the paperwork could be completed within 90 days.

The network could give its members more leverage when negotiating payments from health insurers and would also help them compete for contracts, according to Mark Burmester, Methodist's vice president for strategic planning and business development.

Hospital officials are in the process of forming a limited liability company, according to the report. Leaders of the group have also met with officials from critical access hospitals across the state, and 34 have sent written notices expressing interest in joining the group. The list has not yet been made public, according to the report.

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