Issue link: https://beckershealthcare.uberflip.com/i/627546
15 SPINE LEADERSHIP Advocate Health Care to Run 56 Metro Chicago Walgreens Clinics: 6 Things to Know By Kelly Gooch W algreens is outsourcing 56 in-store healthcare clinics across the greater Chicagoland area to Downers Grove, Ill.-based Advocate Health Care. Here are six things to know about the arrangement. 1. Under the arrangement, Advocate will own and operate the clinics, which are located in Cook, DeKalb, DuPage, Kane, Kendall, Lake, McHenry and Will counties. 2. e clinics will be branded as Advocate Clinic at Walgreens. 3. e clinics will continue to offer walk-ins and same-day appointment scheduling and will open under Advocate Health Care in May 2016. 4. Advocate Clinics at Walgreens will be staffed by board-certified nurse practitioners employed by, trained by and supervised by Advocate Medical Group. Advocate plans to hire its initial workforce from among the employees currently working at Wal- greens' clinic locations. 5. Officials said in a news release the arrangement "will strengthen care coordination for patients, while also furthering overall convenience and access." Pat Carroll, MD, CMO for Walgreens Healthcare Clinics, added, "We believe this approach will help ensure a true continuum of care for patients and their provid- ers. is is also an emphasis for our Walgreens-man- aged clinics, where we continue to make investments, such as a new EHR platform, to offer patient benefits through a variety of convenient care options." 6. is is not the first arrangement between Wal- greens and Advocate Health Care. Walgreens cur- rently operates on-site pharmacy locations at three Advocate Health Care hospitals, with plans to expand to three more Advocate Health Care hospitals in the near future. n Moody's: 3 Important Insights Into the Orthopedic Device Industry in 2016 By Anuja Vaidya M oody's Investors Service has released its Healthcare Quar- terly newsletter, which is focused on developments to watch for in 2016 in a number of sectors, including the medical device industry. Here are three insights: 1. M&A integration and deleveraging. Moody's expects the companies created by Medtronic, Becton, Dickinson and Co., and Zimmer Biomet Holdings to continue to deleverage in 2016. The companies' ratings were downgraded by Moody's in 2015 due to in- creases in their leverage. Synergies will help boost these companies' earnings and cash flow and help support an overall positive outlook for the medical device sector in 2016. Additionally, the legislation stalling the U.S. medical device tax will help boost the industry's earnings growth in 2016. 2. Pricing pressure on orthopedic implants. Hospitals' ability to negotiate more favorable prices will continue to increase as they employ more physicians in 2016. CMS' bundled payments initiative for hip and knee replacements, beginning on April 1, is credit nega- tive for the largest orthopedic device companies, including Stryker, Zimmer Biomet and Johnson & Johnson. Zimmer Biomet is the most vulnerable to bundling because it derives about 65 percent of its revenues from hip and knee devices. 3. Product pipeline and reimbursement coverage. A number of device companies have recently received or are expected to receive United States and European Union regulatory approvals for new products, which will contribute to sales growth in 2016. However, hospital reimbursement from CMS and other payers will ultimately affect sales the most. n OrthoVirginia Merges With The Orthopaedic Center of Central Virginia By Laura Dyrda The Orthopaedic Center of Central Virginia in Lynchburg merged with OrthoVirginia, according to a News Advance report. The Orthopaedic Center of Central Virginia has become Ortho- Virginia, but the practice's office will remain at the same location in Lynchburg. The new practice adds 18 physicians to the OrthoVirginia mega-group. OrthoVirginia now has 105 physicians. The larger OrthoVirginia group includes 22 offices, 11 of which are in the greater Richmond area, as well as 14 physical therapy locations. The Orthopaedic Center was originally established in 2005 after two smaller groups merged and includes outpatient surgery, outpatient therapy and MRI facilities. The merger allows the surgeons to remain independent and continue delivering the same day-to-day clinical operations as part of a larger group going forward. n SPINE LEADERSHIP