Question

In: Operations Management

does ownership of the HMO affect management strategies? what about utilization outcomes?

does ownership of the HMO affect management strategies? what about utilization outcomes?

Solutions

Expert Solution

HMO ownership type is significally assosiated with medical management processes, risk sharing by provider, risk sharing by consumer and other type of management strategies. As related to hospital-owned HMO , insurance company owned HMO have fewer hospital discharge, fewer hospital days and longer length of stay.National managed care organization -owned HMO have fewer cardiac catheterizations and lower average outpatient prescriptions costs. Independently owned HMO has more cardiac catheterizations. For profit HMO has lower prescription cost. Relative to hospital owned HMO , insurance company owned HMO are more likely to use hospital risk sharing and provider capitation and less likely to use out of pocket payment for hospital use , and hospital risk sharing. physician hospital owned HMO are less likely to use catastrophic case management. For profit HMOs most likely to use hospital risk sharing and catastrophic case management.


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