GW HEALTH PLAN TO DISCONTINUE OPERATIONS 

WASHINGTON--The George Washington University Health Plan (GWUHP) announced today that it will cease soliciting new customers and begin an orderly process to discontinue all operations. The final date of Health Plan operations is expected some time after the end of the year.

As a part of the GW Medical Center, the GW Health Plan was formed in 1972 and is a not-for-profit managed-care company with over 70,000 members. This decision follows several years of investigating a variety of options for the GW Health Plan.

“Our options were dictated by the changing climate in the health industry,” said GW Health Plan Chairman of the Board, John F. Williams, MD, EdD. “During the past several years, many health plans, typically smaller ones or university-sponsored plans such as ours, have gone out of business or been dissolved. The GW Health Plan has not been immune to these pressures.”

Other health plans that have closed recently include those owned by Yale, the University of Rochester, and the Mayo Clinic.

 “The Health Plan does not have access to other outside sources of capital that are required to adequately expand and compete with larger managed care plans,” explained Dr. Williams. “In addition, the GW Medical Center is focusing on enhancements to education and research while divesting its direct ownership of clinical healthcare delivery operations.”

To that end, the GW Medical Center began implementing a restructuring strategy in 1997 when it entered into a partnership agreement to operate GW Hospital. This partnership has paved the way for the construction of a new hospital, scheduled to open in 2002. In 2000, the Medical Center’s faculty practice group was reorganized into a separate corporation for greater flexibility.

While the final date of health plan operations has not been determined, advance notice will be provided to all members as decisions are made. The Health Plan intends to maintain its physician, hospital, and other provider networks through this period, so members will have the opportunity to continue to see their physicians and receive covered benefits and services.

“We are a community leader in the Washington metropolitan area,” said Dr. Williams. “We will continue to provide high-quality service to our members and will assist them during this transition.”

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