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Longitudinal study of health maintenance organization efficiency
1Department of Health Administration, Virginia Commonwealth University, Grant House, 1008 East Clay Street, PO Box 980203, Richmond, Virginia 23298-0203, USA.
This study analyzed health maintenance organization (HMO) efficiency over time using data envelopment analysis (DEA). Results show HMOs generally improve efficiency longitudinally, with specific models demonstrating superior performance.
Area of Science:
- Health Services Research
- Health Economics
- Management Science
Background:
- Previous research on health maintenance organization (HMO) efficiency was limited to small inter-group comparisons.
- Longitudinal studies analyzing HMO efficiency in the United States were previously absent.
Purpose of the Study:
- To longitudinally analyze HMO efficiency using a data envelopment analysis (DEA) model.
- To compare the efficiency of various HMO types using DEA.
Main Methods:
- A longitudinal cohort of 36 HMOs was followed from 1993-1997.
- Input and output variables were collected as proxies for efficiency.
- Data envelopment analysis (DEA) methodology was applied to assess efficiency.
Main Results:
- HMOs demonstrated a general trend of improved efficiency over time.
- Independent Practice Association (IPA) HMOs exhibited the highest improvement in efficiency.
- HMO type, profit status, federal eligibility, and age were identified as predictive variables for efficiency.
Conclusions:
- HMOs are longitudinally improving in efficiency.
- Specific HMO models are longitudinally more efficient than others.
- Key attributes of efficient HMOs have been identified, informing policy decisions for cost containment and effectiveness.
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