Issue link: https://beckershealthcare.uberflip.com/i/1074723
34 HEALTHCARE NEWS Zuckerberg hospital is out of network with all private insurers, leaving patients with massive bills By Morgan Haefner Z uckerberg San Francisco General's decision to remain out of network with all private health plans can cost policyholders tens of thou- sands of dollars through balance billing, according to a Vox investigation. Five things to know: 1. Zuckerberg San Francisco General, which under- went a name change after Facebook founder Mark Zuckerberg and his wife Priscilla Chan, MD, donated $75 million to the hospital, is the city's largest pub- lic hospital and houses San Francisco's only top-tier trauma center. 2. However, privately insured patients brought to the hospital's emergency room, either by ambulance or another form of transportation, often pay significant- ly more for the services they receive at Zuckerberg than they would if they went to another hospital, ac- cording to Vox. 3. While most large hospital ERs negotiate prices for services with private health plans, Zuckerberg isn't in network with any private health plans — subjecting many patients to balance billing practices. 4. A Zuckerberg hospital spokesperson confirmed with Vox it doesn't network with any private health insurer, and said the practice is normal. "It's a pretty common thing," spokesperson Brent Andrew told Vox. "We're the trauma center for the whole city. Our mission is to serve people who are underserved because of their financial needs. We have to be attuned to that population." 5. But most billing experts told the publication it's rare for a major hospital like Zuckerberg to be out of network with all private health plans. Nearby trauma centers in Davis, Calif., and Portland, Ore., and most other public trauma centers advertise the private plans they network with on their websites. "According to what I've seen, that's unusual," Christo- pher Garmon, PhD, an economist at the University of Missouri Kansas City, told Vox. "I've heard anecdotes of some hospitals trying a strategy like this, but my impression is that it doesn't last very long." n Cleveland Clinic adds 4 hospitals By Ayla Ellison I ndian River Medical Center in Vero Beach, Fla., and Martin Health System, a three-hospital system based in Stuart, Fla., are now part of the Cleveland Clinic health system. Cleveland Clinic said the transactions closed Jan. 1 af- ter receiving the necessary regulatory approvals. Cleveland Clinic signed a definitive agreement in Oc- tober 2018 to acquire Martin Health System. Under the agreement, Cleveland Clinic committed to a $500 mil- lion investment over five years in Martin Health System. Cleveland Clinic agreed to invest $250 million in Indian River Medical Center over the next 10 years. n Private equity firm acquires orthopedic technology company: 4 things to know By Laura Dyrda C hicago-based healthcare private equity firm Linden Capital Partners completed the acquisition of Avalign Technologies, a Bannockburn, Ill.-based provider of implants, specialty surgical instruments, cutting tools and cases and trays for orthopedics and acute care, according to PE Hub. Four things to know: 1. Financial terms of the agreement weren't disclosed. 2. Avalign has a broad portfolio of manufacturing solutions and can bring new ideas from concept to launch. "We are proud of the business we have built at Avalign and are excited to partner with Linden through our next phase of growth," said Avalign CEO Forrest Whittaker. "We chose Linden because of their deep healthcare and contract manufacturing expertise and are confident they have the experience and resources to support the company's growth strategy." 3. Avalign has a reputation for quality systems, flexible capacity capabilities and customer service. "We are excited to partner with the management team to continue to pursue the compa- ny's value creation plan," said Linden Operating Partner and Chairman of Avalign Technologies Ernest Waaser. 4. Kirkland & Ellis was the legal advisor to Linden, and William Blair & Company and Harris Williams were financial advisors to Avalign. n