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Related Experiment Videos

Will PSOs be a disaster or a dream?

M C Jaklevic

    Modern Healthcare
    |April 2, 1999
    PubMed
    Summary
    This summary is machine-generated.

    Provider-owned health plans struggle with financial risk management. Many provider-owned Health Maintenance Organizations (HMOs) experienced losses in 1997, raising concerns about future provider-sponsored organizations.

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    Area of Science:

    • Healthcare Management
    • Health Economics
    • Risk Management

    Background:

    • Hospitals and physicians have historically faced challenges in managing insurance risk.
    • Numerous provider-owned Health Maintenance Organizations (HMOs) have reported financial losses.

    Purpose of the Study:

    • To assess the financial viability of provider-owned managed-care plans.
    • To evaluate the potential success or failure of upcoming provider-sponsored organizations.

    Main Methods:

    • Analysis of a survey of managed-care plans.
    • Review of financial performance data for provider-owned HMOs in 1997.
    • Examination of recent news reports on provider-owned plan losses.

    Main Results:

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    • 12 out of 30 surveyed provider-owned HMOs incurred financial losses in 1997.
    • Over 20 provider-owned plans have recently experienced significant financial setbacks.
    • A notable trend of financial underperformance exists among provider-owned managed-care entities.

    Conclusions:

    • The financial performance of provider-owned managed-care plans indicates significant risk.
    • The success of future provider-sponsored organizations remains uncertain due to past failures.
    • Hospitals and physicians face ongoing challenges in effectively managing insurance risk within managed care.