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  • Title: Study results show decline in HMO operating margins.
    Author: Hamer R, VanAntwerp S.
    Journal: Healthc Financ Manage; 1997 Jun; 51(6):78-80, 82, 84. PubMed ID: 10167846.
    Abstract:
    In the early 1990s, virtually all HMOs reported healthy profits, especially in markets with low managed care penetration. However, a recent survey has revealed that HMO operating margins experienced sharp declines in 1995. Some reasons for these declines include: more competition as the healthcare marketplace has become more saturated with HMOs; aggressive price negotiations by employers; and rising HMO medical and administrative expenses. The study also revealed that all types of HMOs experienced operating margin declines, demonstrating that organizational structure was an unlikely contributing factor.
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