Einstein Healthcare Network (EHN) is a private, not-for-profit organization with several major facilities and many outpatient centers serving the Philadelphia region. Einstein Medical Center Philadelphia facility is a tertiary care teaching hospital with a Level One Trauma center. EHN's MossRehab is a nationally recognized medical rehabilitation facility with inpatient and outpatient services.        

EHN employees over 8,500 people with approximately 1,200 physicians and 1,200 licensed beds. The medical staff includes over 700 primary and specialty care physicians and 425 residents and fellows.       

Einstein Medical Center Montgomery opened in 2012 in East Norriton. The facility is the first completely new medical center to be built in the southeastern Pennsylvania region in over a decade. Einstein opened the facility, which is located in a middle to upper-middle class area, to offset its Philadelphia facility’s high indigent population.   

Einstein is known for their strength in transplant, bariatrics and for its main Philadelphia location, trauma.

EHN is led by Barry R. Friedman, its president and CEO.

SYSTEM INTEGRATION
Einstein Healthcare Network is a Level 4 integrated healthcare delivery system. It is the second highest degree of distinction. Level 4 IDNs are vertically integrated, have centralized integration and purchasing and distribution integration; most of their relationships are owned, leased or managed. For comparison, Kaiser Permanente is a Level 5 system, which is primarily a health insurer that owns and operates facilities to provide every level of care.

VALUE-BASED AGREEMENTS
EHN has not yet participated in an accountable care organization and according to our research, has no plans to join an ACO.

However, EHN led the effort to create Noble Health Alliance, a strategic partnership formed in 2013 between Einstein, Abington Health, Crozer-Keystone Health System and Aria Health System. Its initial purpose was to offer employees a discount for using member hospital services, then gradually increase the level of clinical integration.

Several developments last year threaten the future of EHN. Abington Health was acquired by Jefferson Health in May 2015. In October 2015, Jefferson reached a preliminary agreement to acquire Aria. Crozer-Keystone was acquired in October 2015 by Los Angeles-based Prospect Medical Holdings.

Despite changes in ownership, member organizations are required to fulfill their contracts through 2018. But the future of Noble beyond 2018 is questionable.

Einstein Medical Center Montgomery participated in CMS’ Bundled Payments for Care Improvement initiative for hip replacement. They exited the program soon thereafter because of unforeseen potentially expensive outliers.

An EHN executive recently told us that while Philadelphia is exempt from CMS’ mandatory bundled project, they learned enough from their experience that “we would be in a good position if we wanted to re-engage in that.”

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