The impact of ownership conversions on HMO performance.
Recently, several Blue Cross plans that sponsor Health Maintenance Organizations (HMOs), among other insurance products, have sought regulatory approval to convert from a not-for-profit to a for-profit entity. We examine the impact of not-for-profit HMOs converting to for-profit status in a fixed-effects framework using HMO level data from InterStudy. Our findings indicate conversions to for-profit status do not significantly impact HMO prices, profit margins, use of hospital days or ambulatory visits, and the provision of Medicare and Medicaid products.
Town
Robert
R
Division of Health Services Research and Policy, School of Public Health, University of Minnesota, Mayo Mail Code 729, 420 Delaware St. SE, Minneapolis MN 55455, USA. rjtown@umn.edu
Feldman
Roger
R
Wholey
Douglas
D
D000553:Ambulatory Care; D054598:Blue Cross Blue Shield Insurance Plans / Q000191:economics / Q000458:organization & administration*; D006279:Health Maintenance Organizations / Q000191:economics / Q000458:organization & administration* / Q000706:statistics & numerical data; D006302:Health Services Research; D006760:Hospitalization; D006801:Humans; D009939:Organizations, Nonprofit / Q000191:economics / Q000458:organization & administration*; D010067:Ownership / Q000145:classification* / Q000191:economics; D012044:Regression Analysis; D014481:United States