HMOs increasingly impose controls on drug prescribing

Article Abstract:

A growing number of health maintenance organizations are using drug utilization reviews, withholds and risk pools, and formularies to control the cost of drug prescriptions. According to a Marion Merrell Dow Inc survey, 48% of HMO's used drug utilization reviews in 1991, a 1% increase over 1990; 27% used withholds, a 2% increase; and 49% used formularies, up 5%. Other monitoring practices included quality assurance programs - 43% - and financial incentives - 15%.

Laws, regulations and rules, Prescription writing

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HMOs expect to prevail under managed competition

Article Abstract:

Health Maintenance Organizations (HMO) are in a good position to profit from health care reform planned by Pres Clinton. Although they will face competition from physician-hospital networks for employer business, HMO executives believe that their administrative skills and experience will allow them to provide the best-managed, most efficient system.

Management, Planning, Managed care plans (Medical care), Health care reform

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