The Financial Experience of Hospitals with HMO Contracts: Evidence from Florida

In this paper, we report results from the first study to systematically examine trends in the financial experience of hospitals with health maintenance organization (HMO) contracts. The longitudinal analysis (1990 through 1997) focused on hospitals in Florida. Hospital operating margins for HMO cont...

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Main Authors: Gary J. Young, James F. Burgess, Kamal R. Desai, Danielle Valley
Format: Article
Language:English
Published: SAGE Publishing 2002-02-01
Series:Inquiry: The Journal of Health Care Organization, Provision, and Financing
Online Access:https://doi.org/10.5034/inquiryjrnl_39.1.67
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author Gary J. Young
James F. Burgess
Kamal R. Desai
Danielle Valley
author_facet Gary J. Young
James F. Burgess
Kamal R. Desai
Danielle Valley
author_sort Gary J. Young
collection DOAJ
description In this paper, we report results from the first study to systematically examine trends in the financial experience of hospitals with health maintenance organization (HMO) contracts. The longitudinal analysis (1990 through 1997) focused on hospitals in Florida. Hospital operating margins for HMO contracts grew tighter toward the end of the study period when the median margin was less than 1%. Teaching hospitals had operating margins that on average were below that of their nonteaching counterparts. The continued growth of HMOs and other managed care entities may have important implications for the future financial viability of U.S. hospitals.
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spelling doaj.art-d0e69124166c4ce8ba9ad3c5957176dd2022-12-21T18:00:30ZengSAGE PublishingInquiry: The Journal of Health Care Organization, Provision, and Financing0046-95802002-02-013910.5034/inquiryjrnl_39.1.67The Financial Experience of Hospitals with HMO Contracts: Evidence from FloridaGary J. YoungJames F. BurgessKamal R. DesaiDanielle ValleyIn this paper, we report results from the first study to systematically examine trends in the financial experience of hospitals with health maintenance organization (HMO) contracts. The longitudinal analysis (1990 through 1997) focused on hospitals in Florida. Hospital operating margins for HMO contracts grew tighter toward the end of the study period when the median margin was less than 1%. Teaching hospitals had operating margins that on average were below that of their nonteaching counterparts. The continued growth of HMOs and other managed care entities may have important implications for the future financial viability of U.S. hospitals.https://doi.org/10.5034/inquiryjrnl_39.1.67
spellingShingle Gary J. Young
James F. Burgess
Kamal R. Desai
Danielle Valley
The Financial Experience of Hospitals with HMO Contracts: Evidence from Florida
Inquiry: The Journal of Health Care Organization, Provision, and Financing
title The Financial Experience of Hospitals with HMO Contracts: Evidence from Florida
title_full The Financial Experience of Hospitals with HMO Contracts: Evidence from Florida
title_fullStr The Financial Experience of Hospitals with HMO Contracts: Evidence from Florida
title_full_unstemmed The Financial Experience of Hospitals with HMO Contracts: Evidence from Florida
title_short The Financial Experience of Hospitals with HMO Contracts: Evidence from Florida
title_sort financial experience of hospitals with hmo contracts evidence from florida
url https://doi.org/10.5034/inquiryjrnl_39.1.67
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