How does Health Alliance Medical Plans fit into the future plans of the integrated system?
Health Alliance would remain a for-profit business under the not-for-profit Carle health system, and keeping it is essential to long-range plans for necessary cost controls, a high quality of care and value for patients. Keeping Urbana-based Health Alliance under Carle ownership also keeps 450 jobs in the local community. Q: How can Carle hospital afford $250 million to buy Carle Clinic? Can’t the two organizations just merge without a sale? A: The hospital plans to borrow money and pay the debt off over time, and without Health Alliance involved in the package it would have been a much less expensive transaction. But the fact is, the clinic and Health Alliance are assets and, legally, the hospital is required to pay fair market value. Q: What hurdles remain before this merger could be finalized? A: Carle Clinic owners, most of whom are practicing Carle doctors, will vote on the hospital’s purchase offer around the end of November, and 75 percent of the clinic shareholders must approve
