Rural, independent Kansas hospitals launch clinically integrated network

Seven of Kansas’ independent rural hospitals have come together to form a clinically integrated network, the latest in a slew of such collaborations that have sprung up among providers seeking more efficient and coordinated operations. 

The new entity announced Wednesday is called the Kansas High Value Network (KS-HVN). Its members together represent $545 million in net revenue, run five critical access hospitals and together serve a population of 190,000 patients—with hopes to grow and include more independent rural hospitals down the line. 

"The communities we serve want to keep rural healthcare rural, and close to home," Edward Herrman, chair of the KS-HVN board as well as the president and CEO of member hospital HaysMed, said in the announcement. "This collaboration helps us ensure that decisions about care in our communities are designed for our communities."

KS-HVN follows six similar clinically integrated networks set up by Cibolo Health, an advisory firm that supports the rural hospitals by heading the day-to-day management of the network. The networks began in 2023 with the Rough Rider High-Value Network in North Dakota and, prior to KS-HVN, had most recently added the Wisconsin High Value Network last fall. 

"The momentum behind clinically integrated networks reflects a broader shift in healthcare toward greater collaboration, accountability and value,” Ben Bucher, vice president of network operations for Cibolo Health, told Fierce Healthcare. “As policymakers, providers and health facilities look for scalable ways to improve outcomes and control costs, CINs have emerged as a proven framework for aligning incentives while keeping care decisions close to patients and their physicians—keeping care local.”

Similar to those collaborations, hospitals participating in the KS-HVN remain independent but are working together on best practices around care delivery related to outcomes, administrative efficiency and cost. That will include the formation of value-based arrangements with insurers, they said, as well as other multi-hospital programs (with optional participation) that could lower the costs of purchasing equipment and services. 

Off the bat, a Clinical Integration Committee formed with a provider from each hospital will be establishing clinical metrics for a network-wide data-sharing platform, a key step toward performance improvement and striking those value-based care arrangements with insurers.  

The networks launched through Cibolo Health and others have covered a wide range of clinical and operational collaborations, for instance, by sharing medical specialists, pooling staffers for employee health insurance plans, splitting the cost of community investments or striking shared contracts for vendor services. They’re often floated by advocates as a favorable alternative to merging with a larger health system or shutting down altogether. 

The government has also been receptive to the arrangements, with funding awards available through federal subagencies or states’ (including Kansas’) Rural Health Transformation Fund programs. 

“We're encouraged to see federal investment supporting the development of these networks, particularly in rural communities that can benefit from stronger care coordination and population health infrastructure,” Bucher said. “The CINs that have matured over the past several years are demonstrating that when providers work together around shared quality and performance goals, they can achieve meaningful improvements in both patient outcomes and system efficiency, ultimately leading to reducing the cost of care."