GENCARE VIES FOR HEALTH-CARE CLIENTS

GenCare Health Systems has added its name to the list of managed health care companies interested in expanding into Cape Girardeau.

A state official said the appeal of Cape Girardeau's health care business isn't unique. Other communities outside St. Louis and Kansas City have seen an abundance of health care changes.

GenCare is the fourth in what is expected to be a large number of companies to express an interest in Cape Girardeau's health care. Already a local physician-hospital organization is offering an insurance product. Humana and HealthLink, two other managed care companies, are looking at Cape Girardeau as a possible growth area.

Deputy director of GenCare Linda Logsdon said that company also is interested in expanding into Cape Girardeau. GenCare has worked in Southeast Missouri since 1992. The company signed contracts with Lucy Lee Hospital in Poplar Bluff, Twin Rivers Hospital in Kennett and Madison Memorial Hospital.

GenCare operates an office in Sikeston. The company received approval in the first quarter of this year to market health maintenance organization health benefits in Butler, Carter, Dunklin, Madison, New Madrid, Pemiscot, Ripley, Stoddard and Wayne counties.

It must contract with one of the local hospitals before it can receive state approval to begin marketing the HMO in Cape Girardeau county.

Logsdon said the company already has contracts with a number of Cape Girardeau physicians, as well as contracts for outpatient surgery, physical therapy and intravenous therapy in Cape Girardeau.

"We look forward to continuing contract discussions with the hospitals and additional physicians in Cape," said Logsdon.

Across the state, health care is in flux.

Randy McConnell, spokesman with the state Department of Insurance, said insurance companies, managed care corporations and hospitals are expanding, consolidating and merging.

In St. Louis, three large hospitals merged. In Kansas City, insurance companies are bidding to buy each other. Hospitals in St. Joseph have joined to submit an application to offer an HMO. And a Springfield hospital is starting its own insurance company.

In Southeast Missouri, five hospitals and more than 200 doctors have formed a physician-hospital organization.

McConnell said interest in managed care has developed in outstate areas as large companies look for ways to save money.

"Larger corporations have a greater interest in moving to managed care of all kinds, but HMOs in particular, because of the perceived cost savings involved," he said.

When Missouri bid its state health care plan, it opened new areas for some insurance companies, McConnell said.

GenCare and Humana both offered insurance packages to government employees. Employees made their choice in October.