Question

Why does Prepaid Group Practice build their own hospital? How does it differ from HMO, some of whom also owns hospital?

Answer 1

Answer:

In a few areas of the country, an alternate kind of payment, postpaid cluster practices began to account for a big share of the market. Postpaid cluster practices provided a service profit that enclosed a comprehensive package of preventive, primary, specialty and hospital services for a flat rate annually. It absolutely was not a replacement plan. The fraternal orders and lodges at the flip of the 201h century had done this, negotiating a flat rate with individual physicians to worry for his or her members. This shifted the danger on to the physicians WHO were currently paid identical flat rate notwithstanding what percentage services they provided or however sick a number of the lodge members became. This approach. Applied to Associate in nursing organized cluster of physicians. Had been wont to develop many postpaid medical practice plans. as an example, the Puget Sound Cooperative postpaid medical practice arrange emerged out of a cooperative community effort to avoid wasting a bankrupt hospital and therefore the Kaiser-Permanente postpaid medical practice arrange developed out of the efforts of Dr. Sidney President Garfield to sell medical services to remote construction sites of the Kaiser-Permanente Corporation. Native medical societies were even as hostile to those postpaid cluster practices as they'd been to the physicians WHO had earlier engaged within the lodge practice" of medication. Doctors used by these postpaid apply plans were refused membership in native medical societies and privileges at native hospitals as a result of since they engaged during this kind of application. They were "unworthy in character and matters of skilled ethics." As a result, several of those postpaid practices had to accumulate or build their own hospitals.

A plan beneath that nominative health services area unit rendered by taking part physicians to Associate in a Nursing listed cluster of persons, with a set periodic payment earlier created by or on behalf of every person or family. If an insurance carrier is concerned, a contract to pay earlier for the total vary of health services to that the insured is entitled beneath the terms of the insurance contract. Such inspiration is one kind of the Health Maintenance Organization (HMO).