HMOs and PPOs in review

The growth of health maintenance organizations (HMOs) and preferred provider organizations (PPOs) has continued in the past 3 months, marked by both an increase in numbers and enrollment. Independent practice associations (IPAs) have taken the lead as the dominant model type. The intensified activity and growth in HMOs have resulted in considerable discussion centering on cost containment and quality of care issues. Employers, enrollees, the Health Care Financing Administration, and the HMOs, each with its own vested interest in these issues, attempt to resolve the conflicts between the cost and quality of healthcare in prepaid plans.