Unique Affiliation Targets Hispanic Community, Boosting Access to Care

Partnerships that are neither mergers nor acquisitions are becoming the preferred option for healthcare consolidation and market expansion among community providers. The recent affiliation between Illinois Masonic Medical Center (IMMC) and Norwegian-American Hospital (NAH) is another example of this innovative trend.

To build on their individual Hispanic healthcare ties here, two local bicultural hospitals teamed up to offer shared programs and enhanced medical services that will result in a stronger continuum of care for this hard-to-reach-and-keep target. The affiliation, which allows both institutions to remain completely autonomous, was announced last week at the Latino Institute, an advocacy group.

Before IMMC and NAH pooled their healthcare resources, patient referral coverage was often lost to outside-network providers. Now the two hospitals can mutually make referrals without sacrificing the existing patient relationship. The partnership involves healthcare services that don't overlap, according to Frank Mott, an NAH administrator. NAH will direct patients to IMMC for tertiary care-related needs and IMMC will send patients to NAH for primary care-related needs. Hispanics account for 35% of IMMC's patient base and 80% of NAH's.

Partnership Highlights Illinois Masonic Medical Center and Norwegian-American Hospital will use their recent affiliation to respond to the community's need for increased access to obstetrical services. Parnership projects include: specialized medical services for high-risk pregnancies and a perinatal referral system that could boost deliveries to 8,500 (from 7,500); coordination of invasive cardiology services; NAH participation in IMMC's wholly-owned HMO, Illinois Masonic Community Health Plan; and NAH involvement in the Hispanocare program, a non-profit healthcare organization created by IMMC that offers a 20% discount on all out-of-pocket medical expenses to its 35,000 members when they receive treatment from the plan's physicians.

Both hospitals - which have conservative marketing communications budgets - are relying on media relations and community event programs to spread the word about the affiliation and its benefits. These programs will be funded by each hospital's operating budget (IMMC: $260 million, NAH: $60,000).

So far, the major thrust of the dual communications efforts between the two hospitals has been the Dec. 3 press conference where the affiliation was announced and first-year projects were unveiled. The event attracted top Hispanic media support that included two Hispanic TV stations, two Hispanic-oriented radio stations and four community papers. Hispanic community leaders as well as local legislators and state health department representatives were also in attendance.

While most of the media coverage was favorable, emphasizing the two hospitals' ability to increase access to healthcare for the Hispanic community, there were concerns about whether the affiliation would hinder existing relationships with other major providers in the area such as IMMC's relationship with Illinois Rush Presbyterian Hospital.

"It is difficult to explain the maze of relationships hospitals enter into, but we had to explain to reporters this relationship doesn't preclude other future affiliations or existing ones," said Jim DeNoyer, IMMC's VP of public affairs. (IMMC, Jim DeNoyer, 773/296-5014; NAH, Frank Mott, 773/292-8312)

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