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    Case Study 18 Presentation

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    Zara Khan
    The Premier Health Care Alliance emerged from the merger of the American Healthcare System and Premier Health Alliance in August 1995. This new alliance had 240 shareholders, 650 facilities, and 1,700 hospitals across 50 states, representing over 30% of US community hospitals. With annual purchases of $10 billion, it was a formidable customer and competitor, five times larger than Columbia/HCA. However, large alliances faced challenges in tailoring services to individual members' needs. To succeed, alliances needed to strategically meet members' needs, be financially sound, and provide desired services.

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    Case Study 18 Presentation

    Uploaded by

    Zara Khan
    297 views11 pages
    The Premier Health Care Alliance emerged from the merger of the American Healthcare System and Premier Health Alliance in August 1995. This new alliance had 240 shareholders, 650 facilities, and 1,700 hospitals across 50 states, representing over 30% of US community hospitals. With annual purchases of $10 billion, it was a formidable customer and competitor, five times larger than Columbia/HCA. However, large alliances faced challenges in tailoring services to individual members' needs. To succeed, alliances needed to strategically meet members' needs, be financially sound, and provide desired services.

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    The Premier Health Care Alliance emerged from the merger of the American Healthcare System and Premier Health Alliance in August 1995. This new alliance had 240 shareholders, 650 facilities, and 1,700 hospitals across 50 states, representing over 30% of US community hospitals. With annual purchases of $10 billion, it was a formidable customer and competitor, five times larger than Columbia/HCA. However, large alliances faced challenges in tailoring services to individual members' needs. To succeed, alliances needed to strategically meet members' needs, be financially sound, and provide desired services.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    297 views11 pages

    Case Study 18 Presentation

    Uploaded by

    Zara Khan
    The Premier Health Care Alliance emerged from the merger of the American Healthcare System and Premier Health Alliance in August 1995. This new alliance had 240 shareholders, 650 facilities, and 1,700 hospitals across 50 states, representing over 30% of US community hospitals. With annual purchases of $10 billion, it was a formidable customer and competitor, five times larger than Columbia/HCA. However, large alliances faced challenges in tailoring services to individual members' needs. To succeed, alliances needed to strategically meet members' needs, be financially sound, and provide desired services.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 11

    The Premier Health

    Care Alliance Emerges

    CASE STUDY: 18
    PRESENTED BY
    ZARA KHAN
    Emergence of Healthcare Alliances

     Alliances are made when organizations wanted to


    grow, but not at the cost of sacrificing quality.
     Promote the idea to combat the profit-making image
    and to induce communities to sell the local hospital
    to them.
     They can mandate compliance.
     All their units buy from a single source in order to
    obtain those lower prices.
    Three Healthcare Alliances

    Sunhealth Alliance

    American Healthcare
    System (AmHS)

    Premier Health
    Alliance
    Sunhealth Alliance
    wanted to grow
    Partners to belong only to
    SunHealth Alliance and set a
    specific amount of purchasing that
    was required

    To acquire another regional


    alliance in New England or
    the West

    Merger
     Started talking about possible merger in February
    1995.
     Consultants were hired to determine the interest and
    compatibility of the two organizations.
     During that time, Sunhealth Alliance was contacted
    by American Hospital Association with a proposal
    that SunHealth merge with the very new
    AmHS/Premier.
     These are two Alliances – American Hospital System
    and Premier health Alliance, had merged in August
    1995.
     They quickly realized that AmHS/Premier had a
    good geographic fit with SunHealth Alliance.
     There was a good fit with services.
     They also came to know that there is a difference in
    the organization of SunHealth and VHA.
     SunHealth and AmHS/Premier had similar
    organizations.
    This new Alliance had:
     240 shareholders
     650 facilities
     1,700 hospitals in 50 states
     It represented over 30 percent of the community
    hospitals in the United States
     Five times larger than Columbia/HCA in terms of
    members and purchasing volume
     Annual purchases would be $10 billion, making it a
    formidable customer and competitor.
    Problems

     Not all hospital CEOs are satisfied with alliances.


     Programs did not meet the needs of individual
    hospitals
     The larger the alliance, which was good for
    purchasing volume, the more challenging it became
    to tailor services that met the needs of individual
    partners.
     For alliances to survive, they had to think
    strategically for their members, be financially sound,
    and provide the desired services.
    Recommendations

     The ability to drive compliance


     The ability to provide successful, comprehensive services
    beyond purchasing
     The willingness to take risks and be creative in finding
    solutions for their members
     Homogeneity in alliance members
     The ability to provide value added services to both
    members and vendors
     The ability to focus on the “top-down sell” (meaning
    hospital CEO involvement)
     Ability to implement at the local level.
    Recommendations

     Develop and communicate a concise vision for the future


    and clearly state long term strategy and objective
     Establish a member network that shared the vision and
    had a good structural fit with the alliance’s strategy
     •Implement programs and services that capitalized on
    the unique competence of the organization and its
    membership;
     Operate a lean, professionally managed organization,
    concentrating on adding real value for members, not
    simply its own growth and self-perpetuation;
     Build long-term relationships with members based on
    trust, commitment, and value

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