Word: hmos
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Allowing federal aid recepients choice in their options of health payment plans could reduce costs, he said. One procedure would allow individual enrollment in the private health plans such as Health Maintenance Organizations (HMOs), he said...
...prospective payment" system of such plans requires enrollees to pay a lump sum in advance. Since the HMOs are going to make no more than this fixed amount, "there is strong incentive to keep the patient healthy, to prevent sickness, and to keep the period of care short," he said...
Other panelists supported the idea of integrating HMOs and other plans into Medicare. Prospective payment plans have shortened hospital stays and reduced the number of admissions, said Joseph P. Newhouse '63, a senior fellow of the Rand Corporation...
Though this cost efficiency offered by HMOs is desirable, the reduced access is not, said panelist David Blumenthal, co-chairman of the Harvard Medicare Project...
This has all been said before. Doctors, journalists and congressmen have been tossing around a handful of acronyms like "DRGs"--diagnostic related groups--and "HMOs"--health maintenance organizations--for quite some time now. And although the changes taking place in the health care system--in the way doctors are paid and in the way hospitals are organized--are of an unprecedented magnitude, something else is happening as well...