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Patients Squeezed, Too!
Staff Reporters
As regular readers of the “Executive-Post” know, several leading health plans have taken a profitability beating over the last several months. The reasons for the economic decline include operational issues, rising medical costs and financial market losses. For example, WellPoint, missed Wall Street’s estimates by a wide margin making financial analysts more than a bit nervous.
Raising Premiums
Now, hoping to calm watchers on the Street, industry leaders like UnitedHealthGroup and WellPoint are assuring investors that they plan to raise premiums enough to stabilize income–even if it means losing some members. As reported in the AMNews, “We will not sacrifice profitability for membership,” WellPoint President and CEO Angela Braly recently told analysts during a conference call.
Diminishing Reimbursements
At the same time, the plans are promising to use their muscle to get better deals from provider networks. This vow isn’t surprising, given that both the plans and analysts see medical costs as a critical factor in sapping industry profits this year.
Assessment
However, it’s not clear that plans like UnitedHealth-already known for extremely aggressive negotiations-can cut physician reimbursements any further.
Conclusion
Your comments are appreciated. Is anyone surprised over the above posture?
Related Information Sources:
Practice Management: http://www.springerpub.com/prod.aspx?prod_id=23759
Financial Planning: http://www.jbpub.com/catalog/0763745790
Risk Management: http://www.jbpub.com/catalog/9780763733421
Healthcare Organizations: www.HealthcareFinancials.com
Health Administration Terms: www.HealthDictionarySeries.com
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Filed under: Healthcare Finance, Managed Care |
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UHG
Did you know that the American Medical Association, Nevada State Medical Association and Clark County (Nev.) Medical Society just joined other opponents of UnitedHealth Group’s plan to acquire Las Vegas-based Sierra Health Services and asked a federal court to reject the Justice Department’s decision to allow the deal to go forward?
Any comments on UHC?
-Ann
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