When it comes to measuring value, few HMOs can make the grade

Area of Science:

• Health Management
• Consumer Health Outcomes
• Managed Care Organizations

Background:

• Managed care organizations (MCOs) focus on delivering value to customers to ensure retention.
• While MCOs excel at demonstrating business value to employers, they often fall short in communicating health and quality-of-life value to consumers.
• MCOs provide significant, lasting value to consumers' lives.

Purpose of the Study:

• To highlight the importance of MCOs tracking and communicating consumer-delivered value.
• To explore strategies for MCOs to demonstrate the health and quality-of-life benefits they provide.
• To enhance member satisfaction, retention, and loyalty through improved value communication.

Main Methods:

• The study reviews existing practices in value delivery and communication within MCOs.
• It suggests simple, cost-effective methods for tracking and reminding consumers of benefits.
• Personalized annual health reports are proposed as a key communication tool.

Main Results:

• MCOs possess the capability to deliver substantial and enduring value to consumers.
• Effective communication of this value can lead to increased member satisfaction and loyalty.
• Improved consumer perception can positively impact the image of managed care overall.

Conclusions:

• MCOs should actively track and communicate the health and quality-of-life value they deliver to consumers.
• Implementing simple tracking and reminder systems, like personalized health reports, is recommended.
• This strategic communication enhances member relationships and benefits the managed care industry.