Western Pennsylvania Faith-Based Senior Care
Groups to Combine Purchasing Power
Pittsburgh Business Times
By:
Kris B. Mamula
First published: July 21, 2008
Two big senior service consortiums are combining their buying power and exploring ways to hold down operating costs for members and demonstrate that faith-based institutions provide the highest-quality, cost-effective care.
The Faith-Based Network of Wexford and Healthcare Ventures Alliance in Erie have created the nonprofit Western Pennsylvania Alliance of Senior Services Providers.
The Faith-Based Network and Healthcare Ventures Alliance represent 21 long-term care providers, including the University of Pittsburgh Medical Center's Canterbury Place in Lawrenceville and Presbyterian SeniorCare in Oakmont.
The Western Pennsylvania Alliance of Senior Services Providers represents more than 11,000 long-term care residents with a combined purchasing budget of $25 million annually, which is nearly twice as much as each agency had individually.
In addition to its larger purchasing power, the new group will encourage members to share information about quality initiatives and other best practices. Benchmarking quality of care measures such as incidence of pressure ulcers and falls among residents will distinguish faith-based institutions from bigger and sometimes better financed for-profit providers, according to Michael Gallagher, executive director of the Healthcare Ventures Alliance.
"We need to do whatever we can to survive and keep these nonprofits going so they can care for the elderly," Gallagher said. "Remaining in their homes is not an option for many people."
Efforts to become preferred providers of senior living services come as Pennsylvania's budget for Medicaid reimbursement for nursing homes increased just 1 percent for the fiscal year that began July 1. Nursing homes had lobbied for a 4.6 percent increase in funding, but legislators decided to limit the increase while also giving home health providers and adult day care programs a 1 percent increase -- a first, according to Mike Hall, deputy secretary for long term living at the state Department of Public Welfare.
"This is a watershed that Pennsylvania has made a policy decision to fund an increase fairly and across the board," Hall said. "It's the first time this has happened in the commonwealth and a first in the nation."
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