Printer Friendly

FLORIDA HEALTH CARE COST CONTAINMENT BOARD RELEASES STUDY

 FLORIDA HEALTH CARE COST CONTAINMENT BOARD RELEASES STUDY
 TALLAHASSEE, Fla., Feb. 27 /PRNewswire/ -- Florida hospitals that admit a greater number of patients enrolled in health maintenance organizations (HMOs)/preferred provider organizations (PPOs) tend to have lower average charges than do hospitals with lower participation in those programs, according to results contained in a study released today by the Florida Health Care Cost Containment Board (HCCB).
 The study "Dimensions of Local Competition in Florida 1984-1990," examined competition in three ways: (1) impact of higher participation levels in HMO/PPO contracts; (2) interhospital competition (competition between hospitals); and (3) competition from freestanding ambulatory surgery centers.
 "The primary thrust of this study was to determine whether hospitals compete on the basis of price," said Kenneth C. Otis II, HCCB chairman of the board. "This study indicates that managed care can be an effective way to contain health care costs by promoting price competition, thus lowering Floridian's health care expenses."
 The study concludes that some of Florida's procompetitive policies and programs with regard to health care are beginning to work. Insurance and other health care companies have made major investments in developing HMO and PPO programs, and employers are purchasing them.
 "The study suggests that normal free market competition does not occur naturally in the hospital industry, and that absent managed care programs, more hospitals located in the same geographic area actually raise average costs," Otis said. "Intervention by managed care programs promotes price competition, thereby lowering health care costs."
 This study also concluded that the presence of freestanding ambulatory surgery centers in a community encourages hospitals to compete on the basis of price for their services.
 Based on the results of the study, Otis said, HCCB supports the following three recommendations: (1) additional research on competition among hospitals focused on HMO and PPO presence and growth; (2) continued monitoring of competition among Florida hospitals; and (3) the adoption of procompetitive practices by both the public and private sectors.
 -0- 2/27/92
 /CONTACT: David Coley, 904-922-5765 or Kim Gerato, 904-922-5588, both of the Florida Health Care Cost Containment Board/ CO: Florida Health Care Cost Containment Board ST: Florida IN: HEA SU:


SS-XX -- FL008 -- 3317 02/27/92 13:51 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 27, 1992
Words:367
Previous Article:GREAT LAKES BANCORP FILES LAWSUIT AGAINST SHAREHOLDER GROUP
Next Article:FLORIDA PROGRESS CORPORATION RELEASES 1991 ANNUAL REPORT TO SHAREHOLDERS
Topics:


Related Articles
FLORIDA HEALTH CARE COST CONTAINMENT BOARD SAYS RATE OF INCREASE ON CHARGES FOR CERTAIN PHYSICIAN SERVICES DECREASED BETWEEN 1989-90
FLORIDA HEALTH CARE COST CONTAINMENT BOARD RELEASES IMPROVED COMPARISONS OF AVERAGE CHARGE DIFFERENCES AMONG FLORIDA HOSPITALS
FLORIDA HEALTH CARE COST CONTAINMENT BOARD REPORTS ON CIGARETTE SMOKING AND CANCER
HEALTHPLAN SERVICES TO MARKET PCA'S MANAGED CARE PROGRAM IN FLORIDA
Systems Communications, Inc. Subsidiary National Solutions Corporation Signs Business Expansion Agreement With HMG Health Care Auditing, Inc.
Juniper Group, Inc. Announces Results Of Managed Care Revenue Enhancement Program
Health Power, Inc. Reports its HMO Subsidiary Placed Under Supervision by the Ohio Department of Insurance and HMO Subsidiary for Sale
HealthPlan Services Announces New and Expanded Client Relationships For PlanVista Solutions Subsidiary.
Olympus Managed Health Care Receives Third Party Administrative License in State of Florida.
Olympus Managed Health Care Nominated for Prestigious International Award.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters