Academic faculty practices: issues for viability in competitive managed care markets

Area of Science:

• Health Policy
• Healthcare Management
• Academic Medicine

Background:

• Managed care marketplace evolution in 1994.
• Academic medical centers' role in healthcare delivery.
• Faculty practice executives' perspectives.

Purpose of the Study:

• Compare managed care and faculty practice executive views on critical policy issues.
• Assess the integration of academic medical centers into managed care.
• Evaluate the future viability of academic medical centers.

Main Methods:

• Survey of 18 managed care executives and 24 faculty practice executives.
• Study conducted in four major metropolitan areas (Minneapolis-St. Paul, Los Angeles, Philadelphia, Atlanta).
• Analysis of five key policy issues concerning academic medical centers and managed care.

Main Results:

• Limited support for financial supplements for including academic medical centers.
• Few unique clinical competencies identified in academic medical centers.
• Managed care organizations showed reluctance for significant restructuring to include faculty practices.
• Concerns raised about resident physician preparedness for managed care.

Conclusions:

• Academic medical centers face challenges in the current managed care environment.
• Reduced traditional funding necessitates greater integration with managed care plans.
• Integration is crucial for the continued success of academic medical centers and their educational missions.