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.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.