Four hospitals in the county are looking to break off from their parent organization and become independent entities.
Lawrence Hospital Center in Bronxville, Northern Westchester Hospital in Mount Kisco, Phelps Memorial Hospital Center in Sleepy Hollow and White Plains Hospital are seeking to separate themselves from Stellaris Health Network.
The network said the decision came after what it called a lengthy strategic review. “Ultimately, they decided that no one solution would necessarily be best for each of the communities that the hospitals serve,” Stellaris said in a press release. “By becoming independent, each hospital can move forward in the direction that each feels is best for its community.”
Stellaris”™ board voted to begin the process on June 13 and the hospitals filed paperwork July 8 with the state Department of Health. The department would have to approve the change, which could take several months to go into effect.
Although the hospitals will be independent from one another, Stellaris will continue to exist in a supporting role, providing shared services such as information technology. The Armonk-based network said its reduced function may mean a leaner staff, though Stellaris said it did not anticipate the loss of any clinical services or physicians at any of the four hospitals.
“In fact, patients should not notice any changes in either the care that they receive from any of the four hospitals or the insurance plans that the hospitals and their physicians accept today,” according to the network.
As independent entities, the hospitals will have the option of forming new partnerships or joining existing networks. The rapidly evolving state of the health care industry means fewer independent hospitals and physicians that aren”™t part of a larger group, said Janine Logan, director of communications for the Northern Metropolitan Hospital Association.
“The old model is going to fade away,” she said. “There will be a variety of agreements and collaborations; it”™s happening all over, it”™s being driven by the market and what the local communities need.”
Partnerships strengthen buying power and reduce costs through shared services, Logan said, and it wouldn”™t be a surprise if the hospitals didn”™t remain independent for long. “The way health care is being delivered and reimbursed, that”™s the way it”™s going,” she said.
In Stellaris”™ written statement, the network noted the possibility that its four hospitals might join other systems. “In today”™s changing health care environment, all providers are constantly evaluating potential affiliations, partnerships, acquisitions and other transactions so that they can continue delivering quality care cost-effectively,” it said.
With the emergence of a one-stop approach to providing health services, the Westchester County Association (WCA) has established a health care consortium, part of its Blue Ribbon Task Force on Healthcare Reform. Members of the consortium include hospitals, large physician groups, home care agencies, nursing homes, assisted living facilities, academic institutions and businesses.
Amy Allen, WCA managing director for advocacy and international trade, said more changes for the industry are on the horizon, which accentuates the need for collaborations and agreements.
“The health care landscape is changing rapidly and access to quality care is of utmost importance regionally,” she said. “Our WCA Healthcare Consortium continues to bring together key regional health care stakeholders to create a roadmap for the future.”
Northern Westchester and White Plains hospitals formed Health Star Network Inc., in August 1996. The network took the trade name Stellaris in 2001.
Lawrence Hospital and Phelps Memorial joined in 1997 and in 2000, the network sponsored the formation of a county emergency medical service that provided paramedic service to one-third of Westchester. The group was the region”™s first community hospital network.
NOTE: An earlier version of this article appeared online July 23.
