The establishment of health maintenance organizations: a geographical analysis

Seven characteristics of 243 Standard Metropolitan Statistical Areas (SMSAs) were subjected to discriminant analysis to determine whether they distinguish SMSAs where at least one health maintenance organization (HMO) was organized between 1972 and 1980 from SMSAs where no HMO developed. The discriminant function correctly classifies 77 per cent of the metropolitan areas considered. Presence of a medical school, regional location, and SMSA population were positively related to HMO establishment. Number of Medicare recipients per 1,000 SMSA residents was not associated with HMO development. (Am J Public Health 1983; 73:184-187.)