There may be fewer corporate entities that control the hospitals, and we'll continue to see mergers and more alliances being formed. Health system mergers are created in an effort to become regional with a network of physicians statewide or in the Northwest. These mergers are one way to consolidate expensive purchases of information systems and other economies of scale. The recent merger of SelectCare in Oregon with the Seattle-based Providence Health Plan gives the Catholic corporation the second largest HMO in the state with 300,000 members. The need to have a wide geographic coverage and become regional is one way for health plans to protect themselves from outside for-profit takeovers.
Many physicians believe they are best suited to direct health care.
They want to be in charge of their destiny in the health system and don't want to be at the mercy of a health insurer or health system. Most Oregon health care leaders agree physicians will continue to group together to compete for managed care contracts. Lyman believes the IPAs that become sophisticated will survive, and PHOs with enough capital will eventually succeed. He foresees large multi-specialty groups as the physician model of the future. Mike Bonazzola, M.D., chief medical officer of Physician Partners, Inc. a physician owned practice management organization, questions the need for health plans.