Do IDSs really benefit from affiliating with managed care plans?
Healthcare purchasers are increasingly turning to managed care plans for help in reducing the cost of providing healthcare benefits. Recent market research by SMG Marketing Group found that HMO penetration into the national healthcare marketplace nearly doubled from google_ad_client = ‘pub-2905054723170537’; // substitute your client_id (pub-number) google_ad_channel = ‘6331884817’; google_ad_output = ‘js’; google_max_num_ads = ‘3’; google_ad_type = ‘text’; google_feedback = ‘on’; 14.7 percent in 1990 to 29.2 percent in 1996.(a) This rise in managed care has led to a trend among IDSs to form, purchase, or affiliate with managed care organizations. SMG studied 569 healthcare organizations nationwide that meet SMG’s criteria for being IDSs.(b) Of these IDSs, 163 (28.5 percent) own or have formal partnerships with managed care plans. Benefits of Affiliations Affiliating with a managed care plan offers several benefits to an IDS, including ready access to the increasing number of managed c