P&S Journal: Winter 1997, Vol.17, No.1
P & S News
Columbia, Cornell Sign Alliance Agreement
Officials at Columbia and Cornell universities signed papers Nov. 27 creating an alliance of their medical faculties to contract for managed care. In announcing the new organization--called "Columbia Cornell Care"--Dr. Herbert Pardes said the combined physician organization would create a powerful force in the health care marketplace as managed care moves increasingly into the New York City region.
"Academic physicians in areas where HMOs already dominate have been less able to determine the conditions under which they practice," he said. "By creating Columbia Cornell Care, we are getting ahead of the curve."
Physicians from both centers will be heavily represented on the policy and operating boards. Earlier, Columbia and Cornell announced their intention to invest up to $50 million each to develop the new system.
More than 2,800 faculty physicians at the two institutions will be eligible to join the alliance. The intention is to create a strong system of support services and practice sites to reduce practice overhead costs through economies of scale and improved management systems. This will enable the network to have competitive strength in the marketplace.
Both Columbia and Cornell have stressed that the new system is not a merger of the current faculty practice systems or a merger of the medical schools. The alliance will consider the eventual inclusion of physicians from affiliated institutions as well as community-based physicians throughout the region.