The Potential for Healthcare Cooperatives in Rural Areas

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• The Potential for Healthcare Cooperatives in
  Rural Areas

Travis West Ohio Cooperative Development
Center OSU South Centers
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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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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.

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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.

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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.

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What is a Co-op?

• User-owned
• User-controlled
• User-benefit

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What Types of Cooperatives Exist?

• Hospitals
• Home Health Care
• Insurance
• Drug Purchasing

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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

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What Types of Cooperatives Exist?

• Hospitals
• Home Health Care
• Insurance
• Drug Purchasing

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Cooperative Care

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

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What Types of Cooperatives Exist?

• Hospitals
• Home Health Care
• Insurance
• Drug Purchasing

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Council of Smaller Enterprises

• Serves Northeast Ohio small businesses
• Provides health insurance options for small
  businesses employees

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What Types of Cooperatives Exist?

• Hospitals
• Home Health Care
• Insurance
• Drug Purchasing

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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

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Does it work in all Situations?

• Florida Comm. Health Purchasing Alliance
• Inability to get more providers (small bus.)

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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

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Contacts

• Travis West
• west.222_at_osu.edu
• 1-800-297-2072 x220
• http//ocdc.osu.edu