Saint Mary's Heath Network, continuing its financial recovery,wants to change the way that employers make decisions about health benefits.
The Reno-based nonprofit's new approach urging employers to pay as much attention to quality outcomes as they pay to costs isn't particularly surprising.
In recent months, Saint Mary's has won recognition for the quality of its care, and executives of the health network acknowledge that their new marketing effort seeks to get mileage from that recognition.
At the same time, however, they note that quality of care is getting more attention nationwide.Medicare, for instance, last year began providing an additional 0.4 percent reimbursement to hospitals that began reporting quality standards.
Larry O'Brien, the president and chief executive officer of Saint Mary's, contends that employers should pay attention to quality because it's an important factor in determining the cost of health care.
"Good quality costs less over time because you're going to do the right thing with the patient," he says.
Saint Mary's push to bring quality to the forefront will be tested next month when the state's Public Employees Benefit Program selects a preferred provider organization for employees of state and local governments.
Hometown Health, part of Washoe Health System, currently holds the contract to provide a PPO for public employees in the Reno area.
Statewide, some 35,000 people participate in the state's PPO program, although the state purchasing department doesn't break out the number who live in northern Nevada.
For Saint Mary's, which was losing as much as $1 million a month before sharp costcutting moves last year, the state contract is a key piece of business.
"We believe Reno is best served by two strong, viable hospitals," says O'Brien."For us not to be given this opportunity obviously doesn't help us."
The board that oversees state employee benefits programs is scheduled to make a decision on the PPO program on Feb.
5.
The state board's decision will be based on cost and the availability of service, but Saint Mary's wants the board to give a good look at quality as well.
Saint Mary's also will argue that state employees in the Reno area should be offered access to multiple health-care networks including Washoe Medical, Saint Mary's and Northern Nevada Medical Center just as they are in the Las Vegas area.
Washoe Med officials said they wouldn't comment on that argument because the bidding still is open.
"It is not appropriate for Washoe Medical Center to comment on a state of Nevada contract that is currently under review through a formal bid process," a spokesman said.
"In fact, to do so could be viewed as an attempt to influence outcomes and is inconsistent with the intent of state procurement regulations."
While the state benefits PPO contract is among the biggest pieces of business up for bid in coming months, Saint Mary's also will be making its pitch about quality when Blue Cross and Blue Shield shops for medical services, says Lisa Dettling, director of marketing and business development for Saint Mary's.
She says the organization also will be pushing quality in its new advertising programs.
