Survey indicates MCOs will continue to expand
March 1, 1998 less than 1 minute read
Survey indicates MCOs will continue to expand
A recent Arthur Andersen survey of CEOs in 300 health care systems and hospitals in 12 Eastern states revealed that over the next 24 months, the number of patients covered by MCOs will increase by 128%. The study found that almost all providers interviewed will participate in Medicare and Medicaid risk products, and 88% of respondents will substantially invest in information systems.
The study also found that more providers plan to add capitated contracts. Thirty percent of hospitals interviewed and almost 40% of physicians interviewed say they plan to have at least some capitated contracts.
As for contract payers, 95% of CEOs feel that they will select hospitals with the lowest cost over the quality of care, and 60% of them feel lower cost will win over optimal location. Finally, more than half of the CEOs said that provider insurance products will effectively compete with traditional payers for covered lives. About 60% plan to form joint ventures with an insurance company and get a license to enter the Medicare or Medicaid managed care arena.
For a copy of the 1997 East Region Healthcare Survey, call (404) 221-1511.
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