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Hospital selection by managed care insurers
1Economics Department, Iona College, New Rochelle, New York, USA.
Hospitals attract managed care patients by managing inpatient care costs, joining integrated delivery networks, and increasing hospital size. These factors are key for securing managed care contracts and business growth.
Area of Science:
- Healthcare Management
- Health Services Research
Background:
- Managed care is a significant payer in healthcare.
- Hospitals face increasing pressure to attract and retain managed care contracts.
Purpose of the Study:
- To identify key factors influencing hospital success in attracting managed care patients.
- To provide insights for healthcare providers seeking to optimize managed care relationships.
Main Methods:
- Analysis of a national sample of 235 acute care hospitals.
- Data collected in 1996.
Main Results:
- Inpatient care costs significantly impact managed care attraction.
- Participation in integrated delivery system networks is a critical factor.
- Hospital size plays a crucial role in securing managed care business.
Conclusions:
- Hospitals should focus on cost control and network integration to enhance managed care attractiveness.
- Strategic decisions regarding hospital size and network participation are vital for managed care success.
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