Physician-hospital organizations are "emerging as a rival to multispecialty group practices" in winning contracts with HMOs, according to a recent report from Minneapolis-based InterStudy Publications. And why do HMOs choose to deal with organized delivery systems such as PHOs and multispecialty group practices rather than just signing up individual physicians? For better cost-efficiency and a greater ability "to demonstrate value to purchasers," the report states. The pie chart shows different kinds of organizations and their shares of the total number of HMO contracts awarded to organized delivery systems.

HMO contracts with organized delivery systems, percentages by system type, 1996