The push to create a patient-centered medical home is gaining traction in Texas, where one of the state's largest hospital groups has acquired an independent physician practice and the management services organization that oversees the physicians.
Texas Health Resources, a faith-based, non-profit health system comprised of some 24 acute care and short-stay hospitals, has announced the acquisition of the MedicalEdge Healthcare Group, an Irving-based, privately held network of more than 280 physicians and 140 physician assistants and nurses operating out of more than 250 locations in north Texas. In a related move, the Arlington-based network also acquired PhyServe, the management services organization for MedicalEdge, and will sell that company to hospital-physician alignment specialist MedSynergies, Inc.
The deal is considered the second largest of its kind in the country.
Officials from both Texas Health Resources and MedicalEdge said the deal is designed to give thousands of north Texas residents access to a complete healthcare network of hospitals, physician practices and specialists, including sleep lab services, infusion services, diagnostic imaging and chiropractic services.
"Physicians are intimately involved and included in the operations and planning for new healthcare accountability within Texas Health," said Michael Stoltz, MD, president of the 200-member Texas Health Physicians Group. "Patients and their families want their doctors involved in healthcare decisions. By aligning more closely with physicians, we believe Texas Health will be prepared for whatever changes result from national healthcare reform, and ultimately that will benefit the patients."
The deal may also give Texas Health leverage in negotiations with insurers. The network had been involved in a bitter dispute with Blue Cross Blue Shield of Texas during the last few months over rates before the two sides renewed their contract.
Texas Health now features a network of more than 600 physicians and related personnel, slightly larger than its chief competitor, the Baylor Health Care System. The network was created in 1997 through a merger of the Fort Worth-based Harris Methodist Health System and the Dallas-based Presbyterian Healthcare Resources.
"This enables Texas Health to become a 'medical home' for thousands of north Texas patients," said Douglas D. Hawthorne, CEO of Texas Health Resources, in a press release. "Immediately, more than 420 physicians, physician assistants and nurse practitioners will become part of our established and well-respected Texas Health Physicians Group, and the patients of MedicalEdge providers will have easy access to a hospital system dedicated to both quality and accountable medical treatment."
"We have built Texas Health to be a 'house with many rooms' to align with all types of physicians," Hawthorne added. "Our ultimate goal is to improve quality and outcomes through better coordination of care from prevention and wellness programs, to acute care, to long term and hospice care. This is the most significant step Texas Health has taken in our strategy to become an integrated provider and coordinator of care and transform the delivery of healthcare in North Texas."
"This is the right time for this to happen," added Clay Heighten, MD, former president of MedicalEdge. "Most people have probably never heard of MedicalEdge, but we have quietly built a medical group of more than 420 providers and other medical professionals. Now those doctors and their patients will benefit from the capabilities we now have as part of a comprehensive health system."
Texas Health MedSynergies, a joint venture between Texas Health and Irving-based MedSynergies, will continue to provide management services for the Texas Health Physicians Group with the addition of PhyServe.
"We are proud of the partnership we have with Texas Health Resources," said J.R. Thomas, president and chief executive officer of MedSynergies. "Through this relationship, we have built a solid foundation of physician services for Texas Health Physicians Group, and we look forward to expanding these services and offerings with the addition of PhyServe."
"We have searched for some time for the right partner to join forces with that will better prepare us for healthcare reform," added Carl Soderstrom, former president of PhyServe Physician Services. "Texas Health Physicians Group provides a stable, exciting work environment for physicians. We celebrate joining with Texas Health Physicians Group and look forward to growing with Texas Health Resources."