GuideStar Health Systems joins Springfield market

by Melissa Wilson

SBJ Staff

At a time when other health insurance providers are exiting mid-sized cities, GuideStar Health Systems Inc. is aggressively pursuing its own niche by serving the health insurance needs of small businesses in Springfield and similar sized cities in the Southeast, Southwest and Midwest.

"Springfield is right in the middle of our strategy. Since the inception of GuideStar, our focus is targeting mid-sized areas to be a medium for small businesses to fill their need for reasonably priced, high-quality health care while providing excellent customer service," said George B. Salem, president and chief executive officer.

GuideStar entered the Springfield market about a year ago and now has 11 companies and more than 400 policyholders enrolled in its preferred provider plans.

A minimum of two employees per company is required to be eligible for enrollment.

GuideStar has formed an alliance with St. John's Health System Provider Network, which includes St. John's Regional Health Center, Aurora Community Hospital, Citizens Memorial Hospital in Bolivar, Skaggs Community Health Center in Branson, South Barry County Memorial Hospital in Cassville, and the Smith-Glynn-Callaway Medical Building for urgent care.

"Our criteria (for entering a market) is a population of 200,000 to 1.5 million, and our research showed that Springfield has quality providers, a good number of employers, a strong broker system and a minimum number of existing competitors," Salem said.

Salem said GuideStar's growth strategy is based on forming strategic alliances with health insurers that want a "private label" company to develop provider networks and manage their health care business in designated markets.

For Missouri policies, Protective Life Insurance Company underwrites the health care, while GuideStar oversees the management of policies, administers claims and billing, handles underwriting and compliance, and markets the products.

Founded in 1995 and based in Birmingham, Ala., GuideStar has 120 employees and regional offices in Oklahoma City and Charlotte, N.C.

The company serves more than 38,000 enrollees in 14 states and has $60 million in premium and premium equivalents under management.