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Dayton, OH Market Overview

HealthLeaders Interstudy, April 2011


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Still reeling from the recession, Dayton lost some of its largest companies over the past year and, with them, its healthcare business coalition. Local healthcare delivery is further hampered by several other factors that include the absence of a public hospital or academic medical center, closure of the area's only mental health hospital, a huge increase in uncompensated care at the safety-net hospitals and a dwindling number of physicians who accept Medicaid patients. But Dayton is looking forward.

In the short term, it can rely on a generous state Medicaid program and coverage mandates for commercial insurers that will only get stronger under federal health reform. In the long run, the city's economy will move away from reliance on large multinationals and traditional manufacturing, and instead focus on smaller, entrepreneurial companies in industries such as aerospace and nonprofit healthcare, which is Dayton's largest industry.

Questions answered in this report:

With high unemployment has come record-high levels of uncompensated care, and Dayton-area hospitals are struggling to remain profitable. What specialty care is being expanded by both major health systems to improve their payer mix? To which geographic area are health systems stretching their services? Which systems will open new hospitals in the next few years? What is the impact of the market's new physician-owned hospitals?

A relatively small percentage of area physicians are employed by health systems. What are the large independent physician groups? What developments in the market should make it easier for physicians to acquire electronic medical records? Which group is furthest along in developing a medical home model of delivery? Do any physician groups operate retail clinics? To what does Ohio attribute its falling medical liability premiums?

Two dominant health insurers counterbalance the market's two big health systems. Why have several health plans had contract disputes with the market's largest health system? Which insurers have dropped that health system? Which Dayton-based health plan anticipates huge growth due to healthcare reform? What are its strategies to achieve that?

Metrics:

- Key market indicators and leading organizations among health systems, physicians and health plans
- Health systems' market share
- Income, revenue, enrollment and pharmacy spend for leading health plans
- Demographics

Scope:

Dayton, which includes the counties of Clark, Greene, Miami, Montgomery and Preble

Primary Research:

Analysis of HealthLeaders-InterStudy data, Billian's HealthDATA, local and state news and industry reports and interviews with local healthcare executives



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