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The Potential for Healthcare Cooperatives in Rural Areas

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.

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The Potential for Healthcare Cooperatives in Rural Areas

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  1. The Potential for Healthcare Cooperatives in Rural Areas Travis West Ohio Cooperative Development Center OSU South Centers

  2. 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

  3. 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.

  4. 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.

  5. 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.

  6. What is a Co-op? • User-owned • User-controlled • User-benefit

  7. What Types of Cooperatives Exist? • Hospitals • Home Health Care • Insurance • Drug Purchasing

  8. 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

  9. What Types of Cooperatives Exist? • Hospitals • Home Health Care • Insurance • Drug Purchasing

  10. Cooperative Care • Home health care services • Obtained county contract • In-home service to elderly (cooking, cleaning, shopping) • Provides employee health insurance

  11. What Types of Cooperatives Exist? • Hospitals • Home Health Care • Insurance • Drug Purchasing

  12. Council of Smaller Enterprises • Serves Northeast Ohio small businesses • Provides health insurance options for small businesses’ employees

  13. What Types of Cooperatives Exist? • Hospitals • Home Health Care • Insurance • Drug Purchasing

  14. 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

  15. Does it work in all Situations? • Florida Comm. Health Purchasing Alliance • Inability to get more providers (small bus.)

  16. 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

  17. Contacts • Travis West • west.222@osu.edu • 1-800-297-2072 x220 • http://ocdc.osu.edu

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