National Networks Try to Attract Infertility Patients.

An increasing number of reproductive endocrinologists are banding together to offer infertility treatments--often with financing and money-back guarantees--in the hope of building on the $2 billion infertility market and gaining new patients.

Due in part to the high cost of infertility treatment and the dearth of insurance coverage, only 50% of infertile couples seek treatment. At least two national networks aim to make infertility treatment more affordable and improve patient care.

These networks offer physicians a variety of services, including marketing, promotional and educational materials, access to patients, the opportunity for referrals, quality measurement, an affiliation with other physicians in the network, and patient financing. In return, physicians pay the network a fee or a percentage of their revenue. And when a patient chooses financing, the network pays the physician.

One such network, IntegraMed Inc., includes 150 reproductive endocrinologists. The publicly owned infertility disease management company based in Purchase, N.Y., was founded 15 years ago and generated $42 million in revenue during the first 9 months of 2000.

Physicians have different options for participating. They can join the network for about $1,500 a month and have access to IntegraMed's marketing program, which helps promote the physician and recruit patients. IntegraMed also offers information systems, practice management, and decision support services. Or the network can run a practice or clinic, for which it charges about 6% of revenue plus business operating expenses, such as construction and travel.

Advanced Reproductive Care Inc. (ARC), a network of physicians who specialize in treating infertility, includes 220 reproductive endocrinologists. The privately held company, based in Palo Alto, Calif., would not disclose revenue figures but has sold patients more than 100 service packages since ARC was formed in 1997, according to Dr. David Adamson, a reproductive endocrinologist in Palo Alto, and ARC chair.

About 65 members have invested in ARC, typically $10,000 each. To belong to the network, physicians agree to give ARC a 10% discount on patient services if the patient uses ARC financing. "The first thing any insurer wants is a discount, so the 10% that ARC keeps is no big deal," said Dr. George Grunert, a Houston reproductive endocrinologist and an ARC member since 1997.