News in brief - Feb. 14, 2005

Wisconsin group chooses Humana plan - Minnesota sues hospital system - HealthGate changes business focus

Wisconsin group chooses Humana plan

The Business Health Care Group of Southeast Wisconsin, a coalition of 25 firms and businesses, recently selected Humana to develop a health care program that promotes price transparency and cost control.

The plan, scheduled to be start Jan. 1, 2006, will focus on consumer choices as a way to alleviate the cost burden of health care benefits on employers. The program will include setting up a network of doctors to meet clinical and cost-savings goals, the group said.

In 2003, the group introduced the maximum allowable charge, a type of rate plan similar to what managed care firms apply. The principles will be included in the Humana program. Most members of the group will offer the plan to employees next year.

Minnesota sues hospital system

Minnesota Attorney General Mike Hatch has filed a lawsuit accusing a hospital system of attempting to monopolize cardiology services in the Twin Cities, the hospital company said.

Allina Hospitals & Clinics, which has 11 hospitals, was served with the lawsuit in late January, said spokeswoman Terri Dresen. She said it accused Allina of violating state antitrust laws by attempting to merge with two independent cardiology groups.

"We are not in discussions to merge in any way, nor are we in any way trying to control the two independent groups," said Dresen.

She said the hospital system had explored a possible merger early last year, then quickly abandoned the plan. "We are confident that we will be able to demonstrate in court that he is wrong about the facts," she said.

A spokeswoman for the attorney general's office did not return a phone message seeking comment.

HealthGate changes business focus

HealthGate Data Corp., which sells online consumer health content to health care organizations, announced in January that it is exiting that business and shifting its focus toward quality improvement and risk management.

As part of the shift in business direction, HealthGate has agreed to sell its content business to EBSCO Publishing, Ipswich, Mass., for $8.1 million. The transaction is contingent on certain conditions, including the approval of HealthGate's shareholders and the company obtaining agreement from certain existing customers to renew existing contracts. The deal is expected to close in April.

HealthGate, based in Burlington, Mass., will retain its evidence-based medical guidelines, Interactive IC and Quality Architect products and services.