Roseville, Calif.-based Adventist Health, a 19-hospital system, is planning to get a limited HMO license, according to a Sacramento Business Journal report.
Adventist's board approved the plan in June, and lawyers and consultants are currently working with the system's managed care division to develop a strategy that could launch in three regional markets next year, according to the report. The Sacramento Business Journal said Adventist plans to file an application with the California Department of Managed Health Care later this year.
Adventist expects to contract with health plans rather than compete with them. Although Adventist's limited HMO will not be as comprehensive as competitors', such as Sutter Health, it will still allow Adventist hospitals and physicians to take more risk in managing care while leaving administrative duties to health plans, according to the report.
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