Historic time: widespread managed care now driving down prices

Article Abstract:

Managed care plans and health maintenance organizations (HMO) will eventually reach a critical mass in market share and thus will control the cost of healthcare for insureds as well as prices paid to physicians. HMO's will enroll about 6 million new members in 1995, with an 11% enrollment growth per year. Managed care insurers will lower insurance premiums by an average of 1.2% in 1995, but are likely to maintain revenue growth of 30.3% on an operating margin of 8.4%. The profitability of managed care plans is achieved by significant reductions made for physician and hospital payments.

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States slap for-profit deals

Article Abstract:

Mergers and acquisitions between nonprofit and for-profit health care entities are increasingly coming under scrutiny by state governments as the financial implications of such deals becomes more evident. Michigan's attorney general, Frank Kelley, points out that community hospitals' assets were built up over the decades through the graces of public charity and federal and state tax exemptions. The impact of Blues plans undergoing conversion in their tax status is also discussed.

Health Care, Health Care and Social Assistance, Hospitals, Administration of Public Health Programs, Health Programs-State, Community Hospitals, Management, Mergers, acquisitions and divestments, Insurance industry, Acquisitions and mergers, Medical care, Political aspects, Health policy, Nonprofit organizations, State government, United States. Internal Revenue Service, Blue Cross and Blue Shield Association

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Managed care cited for slowdown in spending

Article Abstract:

Managed care has helped to slow the growth of US health spending, two new studies reveal. Health expenditures increased 4.4% in 1996, according to the Health Care Financing Administration. Some policy experts question whether managed care can continue to minimize cost increases, however. There are signs, for example, that HMOs can not minimize the growth of premiums much longer.

Prices and rates, Statistics, Medical care, Cost of, Health care costs

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