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CAC-RAMSAY HEALTH PLANS TEAMS WITH SOUTH MIAMI HEALTHSYSTEM TO PROVIDE HEALTH CARE FOR SMALL BUSINESSES

 MIAMI, July 1 /PRNewswire/ -- CAC-Ramsay Health Plans, the first health maintenance organization (HMO) in South Florida to implement a Physician Hospital Organization (PHO) partnership, is working with South Miami HealthSystem's PHO to offer an affordable health care insurance alternative to small employer groups.
 South Miami HealthSystem's PHO is an organization through which the hospital and physicians provide managed care services on a risk-sharing basis to enrollees of HMOs, insurance companies and employees participating in self-funded insurance plans.
 The South Miami HealthSystem PHO includes South Miami Hospital, SMH Homestead Hospital, SMH Diagnostic Center, SMH Home Health Agency and other healthcare services, as well as a physician network of 24 primary care physicians and approximately 180 specialists.
 The innovative concept was initiated only a few years ago but has been gaining momentum in South Florida ever since, as the PHO can create advantages for the parties which enter into agreement and the marketplace. Hospitals can exercise more control over managed care arrangements through a PHO. And a PHO can be key to retaining market share, as it allows the HMO to expand its product to new members who reside in/or near the neighborhood where the partnering hospital is located.
 The South Miami HealthSystem PHO was initially offered to Medicare and Medicaid members and several large employer groups. Now, small group employers will also reap the benefits of the PHO partnership between South Miami HealthSystem and CAC-Ramsay Health Plans.
 Luis Lamela, chief executive officer of CAC-Ramsay Health Plans, said, "The arrangement with the South Miami Health System allows us to extend our product line to more individuals in the South Florida market. Small employer groups will now benefit because they'll have access to health care through this PHO arrangement."
 The need to provide health care to small group employers is on the rise. According to The Florida Health Coalition, 97 percent of employers in South Florida have less than 100 employees.
 "Employees of small groups which have chosen the South Miami HealthSystem PHO as their delivery system will select a primary care physician from a list of 24 physicians in the fields of general, internal or family medicine and pediatrics," said Trip Kinmon, SMH senior vice president. "This physician becomes their family doctor, providing all routine and primary care. Members requiring consultation with a specialist will be referred by this doctor to the appropriate specialist within the network."
 Through the SMH/CAC-Ramsay Health Plans PHO partnership, those who enroll will be members of CAC-Ramsay Health Plans and as such receive their membership card. CAC-Ramsay Health Plans will provide administrative services including marketing, member relations, finance/accounting, provider relations and management information services.
 With the addition of the SMH HealthSystem, CAC-Ramsay Health Plans now has strategic alliances with three other PHOs, including the PanAmerican Network, Palmetto Medical Plan and Mount Sinai Medical Center.
 "PHOs can help individuals and employers to better control health care costs since hospitals and physicians are working together to exercise control over a managed care arrangement," stated Kinmon.
 CAC-Ramsay Health Plans is a South Florida-based, federally qualified health maintenance organization (HMO), serving the needs of more than 122,000 members. The company is Florida's first licensed HMO and operates 13 medical centers conveniently located throughout Dade and Broward counties. CAC-Ramsay Health Plans is a subsidiary of Ramsay- HMO, Inc. (NYSE: RMO), a publicly held managed care company.
 -0- 7/1/93
 /CONTACT: Isa Diaz, director of corporate relations of CAC-Ramsay Health Plans, 305-447-3200; or Debra Rand Webb, director of public relations of South Miami HealthSystem, 305-662-8105/
 (RMO)


CO: CAC-Ramsay Health Plans; South Miami HealthSystem ST: Florida IN: HEA INS SU: JVN

AW-RC -- FL013 -- 7914 07/01/93 16:32 EDT
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Date:Jul 1, 1993
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