Study results show decline in HMO operating margins.
In the early 1990s, virtually all HMOs reported healthy profits, especially in markets with low managed care penetration. However, a recent survey has revealed that HMO operating margins experienced sharp declines in 1995. Some reasons for these declines include: more competition as the healthcare marketplace has become more saturated with HMOs; aggressive price negotiations by employers; and rising HMO medical and administrative expenses. The study also revealed that all types of HMOs experienced operating margin declines, demonstrating that organizational structure was an unlikely contributing factor.
Hamer
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InterStudy Publications, Bloomington, MN, USA.
VanAntwerp
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D003284:Contract Services / Q000191:economics*; D003365:Costs and Cost Analysis; D003625:Data Collection; D004465:Economic Competition; D005376:Financial Management / Q000706:statistics & numerical data / Q000639:trends*; D017048:Health Care Costs / Q000706:statistics & numerical data / Q000639:trends; D006279:Health Maintenance Organizations / Q000191:economics* / Q000706:statistics & numerical data; D007182:Income / Q000706:statistics & numerical data* / Q000639:trends; D014481:United States