title: Weighing the views of a university hospital and medical school regarding an HMO.
abstract: After 14 years of study, the University of Michigan decided to terminate development of a health maintenance organization (HMO). The process was long and difficult because of the university's need to consider the HMO from the university's perspective of both an employer and a provider. As an employer, the university's early view was favorable and then declined when employee interest was found to be weak and the HMO's impact on the rapidly rising cost of the university's health insurance benefit was determined to be modest. As a provider, the university's view was mixed. In regard to its hospitals, the university's judgment was positive largely because it hoped that HMO incentives might help the hospitals remain viable in the health care delivery environment that was becoming increasingly competitive. From the Medical School's point of view, an HMO was felt not to be desirable because it could put in jeopardy the professional fee revenue used by the school to help underwrite its academic programs, which are the primary source of faculty pride and recognition.
mesh_terms: D006264:Health Benefit Plans, Employee / Q000458:organization & administration; D006279:Health Maintenance Organizations / Q000458:organization & administration* / Q000639:trends; D006784:Hospitals, Teaching / Q000458:organization & administration*; D006785:Hospitals, University / Q000458:organization & administration*; D008824:Michigan; D012577:Schools, Medical / Q000458:organization & administration*; D013333:Student Health Services / Q000458:organization & administration