In a move designed to strengthen independent community hospitals and physician practices, Metro Health, Trinity Health and the U-M Health System have joined to launch Pennant Health Alliance.

The new support-services network was unveiled Sept. 22. The alliance initially will offer clinical support and administrative services in four key areas: physician alignment and recruitment, health information technology, revenue cycle management, and group purchasing. Other customized services, such as quality consulting and performance reporting, will be available on an as-requested basis.

Trinity Health’s West Michigan hospitals are part of the group, including Mercy Health Partners in Muskegon, Saint Mary’s Health Care in Grand Rapids, Battle Creek Health System, Mercy Hospital — Cadillac, and Mercy Hospital — Grayling.

The announcement represents the culmination of months of discussion geared toward offering independent community providers a new option for business and clinical support in the region. The final approval was made with a unanimous vote of the U-M Health Corporation board.

Mike Faas, president and CEO of Metro Health, will serve as chief executive officer for Pennant Health Alliance. The organization now is introducing itself to the region and is actively collaborating with providers seeking a network model focused on strengthening local health care while supporting independence.

“We firmly believe that the best health care starts local and stays local,” Faas says. “Pennant Health Alliance offers significant operational, quality and financial benefits without loss of control or ownership. We feel that Pennant Health Alliance will resonate with doctors and hospitals who want to practice good medicine on their own terms.”

Pennant Health Alliance presents a unique model that independent hospital leaders and physicians have helped to craft through conversations and feedback, one that offers significant enhancements to existing provider networks.

Amid national health care reform and the region’s aging population, Pennant Health Alliance will work to increase patient access to local primary and specialty care, while helping to improve the quality of health care and reduce operating and technology costs for hospitals and physician practices. Unmatched skill and scale will be leveraged to deliver services, and the alliance’s key differentiator will be an ability to customize local solutions.

 Pennant Health is backed by the substantial resources and community hospital operations knowledge of Trinity Health, the nation’s 10th largest health system, and UMHS, whose specialty clinical programs are routinely recognized among the nation’s best.

“Pennant Health Alliance allows community hospitals in the region a chance to alleviate the operational demands of back-office services by accessing the scale and benefits of our larger network,” says Roger Spoelman, president and CEO of Mercy Health Partners and West Michigan regional executive for Trinity Health. “We know how hard it can be for smaller hospitals to compete effectively. Trinity Health’s track record in developing successful rural health networks demonstrates our ability to assist communities while respecting local independence.”

Added Dr. Ora Hirsch Pescovitz, CEO of UMHS: “Pennant Health Alliance will deliver access to advanced specialty care through technology integration, clinical care coordination and local program development. Patients will gain the clinical expertise of the University of Michigan Health System without necessarily having to travel to Ann Arbor. By integrating care across the continuum, we will tend to patients’ needs in the most appropriate setting and as close to home as possible.”

Hospitals and physician practices can join Pennant Health Alliance through a Support Services agreement. Services may be purchased through a fee-for-service arrangement or through joint ventures and contractual arrangements with Pennant Health Alliance.