HMO profit margins still dropping, but not so quickly


On the whole, declines in HMO profitability have skidded to a near halt. Through the first nine months of 1997, the median HMO profit margin dropped slightly from 1996, but not anywhere near the dramatic losses posted in the previous two years, according to InterStudy Publications, which monitors HMO trends. In fact, half of all HMOs' bottom lines improved in 1997 from 1996. InterStudy credits the relatively low growth rate of medical expenses, health plans' efforts to tackle administrative costs and the profitability of Medicare risk arrangements for the turnaround.

SOURCE: INTERSTUDY PUBLICATIONS, ST. PAUL, MINN., 1998

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HAP, a subsidiary of Henry Ford Health System, is a nonprofit health plan providing coverage to individuals, companies and organizations. This executive develops strategies to meet membership and revenue targets through products, pricing, market segmentation and advertising.  Aligns business among Business Development, Commercial Sales, Medicare and Public Sector Programs and Product Development. Seeks to enhance and be responsible for business development and expansion through the development of an effective product portfolio, strong interpersonal relationships and service excellence.

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