HMOs back away from Medicaid

Article Abstract:

Many health maintenance organizations (HMOs) in small and mid-size markets are abandoning Medicaid managed care, unable to successfully negotiate difficulties engendered by low capitation rates and payment reductions that have compromised state contracts. Medicaid is becoming less profitable for HMOS even as states are expanding their mandatory Medicaid managed care programs, threatening to leave states with a large financial burden.

Medicaid, Administration of Public Health Programs, Management, Economic policy

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Mixed reviews for AARP's plan to endorse HMOs

Article Abstract:

The American Assn of Retired Persons (AARP) has decided to license its name to selected Health Management Organizations in order to gain discounts, more patient satisfaction and higher quality care for seniors. Beginning in 1997, several plans will be chosen per year. Some observers worry that quality health care might be limited and that financial incentives may influence some selection of Health Management Organizations.

Professional Organizations, Professional Organizations NEC, Licensing agreements, AARP, Professional associations

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HMOs not hurting hospital quality, new survey says

Article Abstract:

A survey of the healthcare industry indicates that HMOs are not adversely affecting the quality of care at hospitals even as competition is driving down hospital costs. The KPMG Peat Marwick LLP survey, encompassing the period between 1992 and 1994, shows that at hospitals in markets with higher HMO penetration, mortality declined 5.25% while costs concomitantly dropped 11.18% for Medicare patients.

Hospitals, Health care industry, Statistics, Surveys

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