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 from VHA, Inc. and Deloitte & Touche. 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.

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