FEWER HOSPITALS JOIN IDSs - integrated delivery systems - Brief Article - Statistical Data Included

Healthcare Financial Management, June, 2000

Over the past year, 290 hospitals shifted affiliations with integrated delivery systems (IDSs), resulting in a net decrease of 38 hospitals belonging to an IDS since January 1999, according to the SMG Marketing Group Inc., Chicago, Illinois. In January 2000, there were 3,058 hospitals in IDSs, compared with 3,096 hospitals in January 1999. More than half of the hospital realignments were related to the closure of certain key IDSs, such as Allegheny Health, Education and Research Foundation and several IDSs operated by Columbia/HCA Healthcare Corporation.

There were 595 IDSs in January 2000, compared with 604 in January 1999. Mergers and consolidations contributed to the decrease in the total number of IDSs. During 1999, 27 IDSs closed or merged and 18 IDSs opened.

Failure of the network to achieve cost containment through integration was not a primary reason for hospitals to leave their IDSs, according to SMG. Dissatisfaction with IDS affiliation seems to be because few IDSs have successfully achieved significant clinical integration or have effectively integrated their acquired group practices. Hospitals apparently still believe IDSs can mature and make the right moves to strengthen clinical integration, according to SMG. Almost half of the nation's community hospitals belong to an IDS.