Financial Returns Off for HMO Contracts

No one ever said dealing with HMOs was easy; in fact, physicians whose staff negotiates with payers on a daily basis can attest to the fact that financial returns are less than expected.

This and other findings were reported in the 15th Annual Health Care 2000 report [1] from VHA, Inc. [2] and Deloitte & Touche [3]. More than half of respondents (58 percent) said managed care has negatively impacted their overall financial success.

It's not all bad news, however; 25 percent of respondents said they experienced favorable results in light of rising costs and more patients.

To offset losses, VHA reports that physicians are approaching their practices with a higher-minded business approach through a 'consumer-centric business model.' In this scenario, patients are charged for access to certain specialists and higher-dollar treatments--if patients are willing to pay more for these services.