How should hospitals relate to Medicare HMOs?

With the increased emphasis on the development of Medicare managed care plans, healthcare organizations should explore Medicare managed care products and structures available in the marketplace and assess how they best fit with their overall strategy and strengths. An organization's Medicare strategy might involve protecting the organization's current Medicare population, increasing network linkages, and gaining experience with managed care and capitated payment contracting. Medicare, however, is only one of many potential payers for organizations. A strategy developed around Medicare, therefore, also must support the organization's overall managed care strategy.