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Abstract:
After the heady mid-1990's rush of lower premiums, most managed care systems tumbled into a well of red ink. Those hit especially hard were nonprofit MCOs, which have a limited ability to raise capital compared with their nonprofit competitors. However, Kaiser Permanente has reported its first quarterly surplus since 1997, and this has given hope to other nonprofits that they too will soon return to the black. Is this hope justified? Is Kaiser's medicine the right treatment for other integrated systems?