Download Types of Cooperatives

The Potential for
Healthcare Cooperatives
in Rural Areas
Travis West
Ohio Cooperative Development Center
OSU South Centers
Current Situation –
Appalachian Ohio
• 29 counties in Appalachia Ohio
• Only 33 hospitals and 13 rural health
clinics available for the total population
of 1.45 million
Relying on Healthcare
• Appalachian counties rely economically
more on the health care sector for both
employment and income generated.
• 15.2 percent of employment and 14.2
percent of payroll income is generated by
the health care industry in Appalachia.
What can they Afford?
• Communities want to be attractive to new
businesses, but many cannot afford to
invest in health care facilities with updated
and advance technologies. Many
communities are looking for alternate ways
to provide adequate services without
depleting local resources.
A Solution?
• Cooperatives seem to be providing a
solution to many communities’ dilemma.
The combination of local established
businesses joining together to pool their
resources and services, creating a desirable
economies of scale has solved some
communities’ problem with adequate
health care services.
What is a Co-op?
• User-owned
• User-controlled
• User-benefit
What Types of
Cooperatives Exist?
•
•
•
•
Hospitals
Home Health Care
Insurance
Drug Purchasing
Rural Wisconsin Health
Cooperative
• Composed of hospitals
• Combine services to share staffing (can
now provide more services to its patients)
• Provides claims and financials services
What Types of
Cooperatives Exist?
•
•
•
•
Hospitals
Home Health Care
Insurance
Drug Purchasing
Cooperative Care
• Home health care services
• Obtained county contract
• In-home service to elderly (cooking,
cleaning, shopping)
• Provides employee health insurance
What Types of
Cooperatives Exist?
•
•
•
•
Hospitals
Home Health Care
Insurance
Drug Purchasing
Council of Smaller
Enterprises
• Serves Northeast Ohio small businesses
• Provides health insurance options for small
businesses’ employees
What Types of
Cooperatives Exist?
•
•
•
•
Hospitals
Home Health Care
Insurance
Drug Purchasing
The Pharmacy Cooperative
• Composed of independent pharmacies
• Negotiate group purchasing agreements
• Coordinate a program that attracts new
pharmacists to take jobs in small independent
pharmacies
Does it work in all Situations?
• Florida Comm. Health Purchasing
Alliance
– Inability to get more providers (small
bus.)
Summary
• Co-ops are a business model that
can assist rural communities
• Not the cure-all, but a viable option
• Access to healthcare an issue for
rural areas
Contacts
• Travis West
• [email protected]
• 1-800-297-2072 x220
• http://ocdc.osu.edu