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Managed care plans: CFOs weigh the benefits.

G L McManis, M Hopkins

Healthcare Financial Management : Journal of the Healthcare Financial Management Association

|April 10, 1987

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Managed health care is transforming the healthcare industry and impacting hospital finances. Hospital CFOs recognize managed care plans as a permanent fixture offering significant growth opportunities despite associated risks.

Area of Science:

Healthcare Management
Health Economics
Hospital Administration

Background:

Managed health care represents a significant shift in the healthcare industry.
This transformation profoundly affects the financial viability of hospitals.
By 2000, capitated managed care plans were projected to account for 70% of insurance premiums.

Purpose of the Study:

To address questions from hospital Chief Financial Officers (CFOs) regarding managed care.
To understand how healthcare organizations are adapting to managed health care.
To assess the impact of managed care on hospital financial strategies.

Main Methods:

A survey was conducted among hospital CFOs.
The survey aimed to gather insights into organizational coping mechanisms for managed care.

Related Experiment Videos

Data was collected to analyze the perceived risks and opportunities.

Main Results:

Managed care is a permanent and evolving aspect of the healthcare landscape.
Hospital CFOs acknowledge inherent risks associated with managed care plans.
Managed care is identified as a primary area for future organizational growth.

Conclusions:

Managed care is an enduring element of the healthcare system.
Healthcare organizations must strategically navigate managed care to mitigate risks.
Embracing managed care presents substantial opportunities for hospital development and financial success.