19 Minnesota hospitals join new clinically integrated network
Headwaters High-Value Network is aimed at sustaining and strengthening rural healthcare.
Photo: Knaupe/Getty Images
Nineteen independent rural Minnesota hospitals and more than 50 clinics have joined the Headwaters High-Value Network in its launch as a clinically integrated network.
The collaborative clinical and business initiative has the goal of strengthening healthcare in rural communities for more than 750,000 Minnesotans.
The clinically integrated network will provide coordinated care and set up operational collaborations designed to control costs and spread best practices among its members, Headwaters said.
The Headwaters network is in discussions with other rural hospitals in Minnesota interested in joining as members and expects to grow.
"The members of the Headwaters network believe that helping rural hospitals to remain independent is the best way to serve the healthcare needs of our communities," said Ken Westman, chair of the Headwaters Board and CEO of Riverwood Healthcare Center in Aitkin, Minn. "We also believe that our independence is strengthened by our interdependence. The more we can work together, the better we can care for our communities."
WHY THIS MATTERS
Rural hospitals face mounting financial challenges that are enhanced through economies of size and scale. The Headwaters CIN will drive care coordination and efforts to reduce administrative burden.
The network includes a Clinical Integration Committee to oversee all clinical and quality initiatives. The committee includes one medical practitioner from each member hospital.
The Headwaters HVN will also provide member hospitals a menu of shared services that promote more efficient operations. The network is exploring shared solutions in a population health platform, data analytics and care management solutions.
As the collaboration deepens among members, the Headwaters HVN aims to be a partner with payers on value-based contracts.
Value-based arrangements are important to hospitals due to a changing payer mix that has become more reliant on Medicare and Medicaid reimbursement.
Anna Basevich, senior vice president for enterprise partnerships and customer enablement at Arcadia, said CINs are beneficial to value-based arrangements.
"For example, a joint data asset informs CIN and health system strategy, positioning organizations to better understand their populations and informing entry into value-based care arrangements – and, importantly, the performance management of those contracts," Basevich said. "Armed with data and combined market share, CINs are well-positioned to negotiate with payers, resulting in favorable contracts that improve financial sustainability, enabling practices to keep their doors open and invest in quality improvement initiatives to provide better care to their populations."
THE LARGER TREND
Another model for rural healthcare is the Rough Rider High-Value Network in North Dakota. In October 2023, 23 critical access hospitals formed the rural clinically integrated network, receiving state funding of $3.5 million to help support the transition to value-based care.
The Headwaters HVN board of directors includes seven leaders from member rural hospitals across Minnesota: chair Ken Westman, CEO of Riverwood Healthcare Center in Aitkin; vice chair Randy Ulseth, CEO of Welia Health in Mora; secretary and treasurer Carl Vaagenes, CEO of Alomere Health in Alexandria; Joel Beiswenger, president and CEO of Astera Health in Wadena; Erik Bjerke, CEO of Madison Healthcare Services; Carrie Michalski, president and CEO of RiverView Health in Crookston; and Rachelle Schultz, president and CEO of Winona Health Services.
The active daily management of the network will be led by experts from Cibolo Health, a company that helps independent rural hospitals create clinically integrated networks. This includes Nathan H. White, president, and Dr. A. Clinton MacKinney, chief medical officer.
ON THE RECORD
"Clinically integrated networks help health systems, especially independent and rural ones, by fostering collaboration and resource sharing, which can mitigate financial pressures. These networks allow healthcare organizations to pool funding to make joint investments in population health technology, like analytics platforms and care management tools, and operational, clinical, and technical teams to leverage these technologies to drive improvement," said Anna Basevich.
Email the writer: SMorse@himss.org
