Managed Care

 

Financial Stability Of HMOs Called A Mixed Bag

MANAGED CARE April 2000. © MediMedia USA
News and Commentary

Financial Stability Of HMOs Called A Mixed Bag

MANAGED CARE April 2000. ©2000 MediMedia USA

An HCIA-Sachs survey says the median HMO profit margin in 1998 was –1.7 percent, slightly better than in 1997. Forty-one percent of HMOs made money in 1998.

Some marquee organizations are rebounding. Not-for-profit Kaiser Permanente ended 1999 with a net loss of $6 million, far from its $288 million net loss in 1998. On the for-profit side, Foundation Health's net income in 1999 was $142 million, compared with a net $165 million loss the previous year.

Many others, however, are still struggling. Aetna Inc. said it would split into separate "health and wealth" businesses — evoking memories of days before Aetna's corporate culture smothered U.S. Healthcare's inventiveness, say some observers. Aetna spurned a purchase offer from WellPoint Health Networks, opting instead for the restructuring plan.

In Massachusetts, Harvard Pilgrim Health Care will continue as a not-for-profit entity, after state officials restructured its debt and agreed its business plan was solid enough to get it into the black by next year. Some large for-profit plans that had considered buying Harvard Pilgrim subsequently expressed concern about entering Massachusetts, where opposition to for-profit care is strong.

Meetings

Pharmaceutical Pricing and Contracting Conference Philadelphia, PA September 22–23, 2014
Private Health Insurance Exchanges Conference Washington, D.C. October 7–8, 2014
National Healthcare Facility Management Summit Palm Beach, FL October 16–17, 2014
National Healthcare CFO Summit Las Vegas, NV October 19–21, 2014
National Healthcare CXO Summit Las Vegas, NV October 19–21, 2014
Innovative Member Engagement Operations For Health Plans Las Vegas, NV October 20–21, 2014
4th Partnering With ACOs Summit Los Angeles, CA October 27–28, 2014
2014 Annual HEDIS® and Star Ratings Symposium Nashville, TN November 3–4, 2014
PCMH & Shared Savings ACO Leadership Summit Nashville, TN November 3–4, 2014
World Orphan Drug Congress Europe 2014 Brussels, Belgium November 12–14, 2014
Medicare Risk Adjustment, Revenue Management, & Star Ratings Fort Lauderdale, FL November 12–14, 2014
Healthcare Chief Medical Officer Forum Alexandria, VA November 13–14, 2014
Home Care Leadership Summit Atlanta, GA November 17–18, 2014