HSI wins approval for HealthLink HMO

FORT COLLINS – HSI Health Plans Inc. has received approval for its new health-maintenance organization, HealthLink.

The Colorado Division of Insurance approved HSI’s application after almost a year of review. The go-ahead applies to Larimer and Morgan counties,

but HSI will apply for expansion of its HMO as contracts are signed with other health-care providers in Northern Colorado.

“The HMO product allows us to enhance our managed-care offerings and our array of health-care coverage,´ said Chuck Mabry, HSI’s chief

executive officer.

The HMO’s approval brings to life the only HMO owned and based in Northern Colorado, a fact that Mabry said should help it develop a strong

membership base.

“I hear that even more strongly today than I was hearing it a year ago,” Mabry said. He indicated that many local business leaders want to deal

face-to-face with individuals providing HMO service to their employees.

Mabry said HealthLink’s expansion to Weld, Logan, Washington, Phillips and Yuma counties should be approved within 60 days, after HSI provides

the Division of Insurance with additional provider contracts.

The HMO must establish relationships with hospitals, medical centers, physicians groups and specialists throughout that territory and is working on

one large contract with Lutheran Health Systems, which operates Northern Colorado Medical Center in Greeley, McKee Medical Center in Loveland

and the Washington County Nursing Home and Clinic in Akron.

In a related development, Poudre Valley Health Care Inc., which operates Poudre Valley Hospital, has completed its $1.25 million investment in

Health Systems Management Inc., an HSI affiliate.

The purchase gives the hospital-management company a majority stake in Health Systems Management, which provides insurance product

management and managed health-care services to businesses.

Health Systems Management will use Poudre Valley’s investment to market HealthLink. The hospital company announced its planned investment last

August, but closing was delayed until the Division of Insurance approved the HMO.

The hospital company will name four directors to Health Systems Management’s board, with the remaining three to be filled by HSM and HSI.

HSI envisions 7,000 members of HealthLink within 18 months. The company’s total membership should reach 22,250 by the end of 1996, growing

to 29,600 by the end of 1997. That includes members of both the HMO and other plans.

Health Systems Management is increasing its employment from 55 to 62 to accommodate HealthLink.

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