HOSPITAL NETWORK SUPPLIES A WELCOME NEW DIRECTION

Five hospitals from Cape Girardeau, Sikeston, Perryville and Dexter and a number of physicians have launched MedAmerica HealthNet. The not-for-profit organization should be operational by September.

This new network will bring managed care to our region -- a new direction in health care that we welcome.

Participating hospitals include St. Francis Medical Center, Southeast Missouri Hospital, Delta Medical Center (Sikeston), Perry County Memorial Hospital, and Dexter Memorial Hospital.

Whether we like it or not, change is coming to health care delivery systems. Only time will tell whether these changes will come at the state or national levels. By implementing new directions now, local hospitals and doctors should maintain a level of control in their own destinies. It's a smart move.

But the real winners should be the health care consumers.

Just what does managed care mean? Hopefully it will translate into greater efficiencies, less duplication of services and lower medical costs.

Across the country, hospitals and doctors are forced to shift unpaid Medicaid, Medicare and indigent care to the paying patients. This cost shifting is commonplace.

But with the introduction of managed care, discounts will be offered to participating patients -- many of whom carried the cost-shifted burden in the past. To make up lost revenues, hospitals and doctors will have to work more efficiently and effectively.

This system should discourage superfluous testing and procedures.

And if hospitals are working as a team, it will hopefully eliminate the need for senseless duplication of services.

MedAmerica HealthNet officials have formulated the concept, but have not yet worked out all the details. It's the appeal of this managed care product that will determine its success with businesses, insurance companies and others. If it's a good deal -- people buy it.

Dr. William Shell of Sikeston, the group's first president, feels confident this organization will be able to compete with managed care plans that favor St. Louis or Memphis. That should impede the flow of out-of-town patient referrals that are done simply for price and not service. Some local medical insurance plans give greater discounts in St. Louis than Southeast Missouri.

The program should also help hospital services become more mobile -- especially in more rural areas of Southeast Missouri.

Mary Dunn of the Southeast Missouri Business Group on Health called the proposal a "positive, good faith effort." Dr. Kent Griffith, president of the Cape Girardeau County Medical Society, also praised the plan. The group should feel buoyed by this initial reception.

Dr. Griffith feels physician participation will be high. A number of doctors have already provided their endorsement. That certainly will be critical to the organization's success. If most all doctors participate, then it shouldn't limit patient choices. That's been a fear of many governmental plans.

We'll be watching the development of this plan -- and the participation level of area doctors -- with interest. We applaud the five hospitals and area doctors for their willingness to embrace this new direction. It's won't be easy, but it should make our regional health care services more efficient and affordable in the years ahead.