Growing diversification in HMOs, 1988-1994

Causes of cost inefficiency in HMOs

Estimates a total effects cost function using a national 1994 health maintenance organization (HMO) data set to examine and update findings related to HMO efficiency. The cost function controls for ownership characteristics (profit status and ownership), size, enrollment diversity, regional location, product diversity, model type, payment characteristics, and years of operation. While not explicitly controlling for quality or acuity, measures of plan and enrollee diversity help control for aculty and quality. Results show that most of the difference in cost efficiency between HMOs is explained by factors specific to the HMO, including efficiencies of scale and scope, lower levels of Medicare patients, and efficient levels of capital. The study also shows that for-profits are more efficient than non-profits because they rely less on withhold pools to control costs. Limitations of the study include weak controls for quality of care, and limited data related to payment characteristics.

Exploring the use of qualitative methods in published health services and management research

There is interest in promoting greater use of qualitative methods in health care research. However, little is known about the volume or characteristics of published studies that use qualitative methods. This article explores these issues through a systematic review of 3 years (1995-1997) of articles classified as research in nine core health services research and management journals. The findings show that only about one in seven published research articles used qualitative methods. Two of the nine journals reviewed contributed 45 percent of the total number of articles using qualitative methods. Four journals contributed a combined 2 percent of this total number. The primary purposes in using these methods are description and articulating stakeholder perspectives. There is no standard number of pages devoted by journals to these studies or evidence that they require more journal space on average than quantitative studies. Most of the studies reviewed presented little or no information on methodology. These findings clarify future areas of emphasis for both editors and researchers wishing to promote the use of qualitative methodology in published health care research.

Changes in health plans serving Medicaid, 1993-1996

To better understand the Medicaid managed care market during a period of rapid change, we developed a new data set that links Medicaid enrollment data with health maintenance organization (HMO) industry data for 1993-1996 to analyze Medicaid enrollment in full-risk health plans. Nearly half of the Medicaid enrollees in a fully capitated managed care arrangement were in plans in which Medicaid makes up at least 75 percent of the total enrollment. In addition, the number of Medicaid-only plans has more than doubled since 1993. Commercial-based plans participated increasingly in Medicaid managed care during the period, yet more than half of the plans entering the Medicaid market were newly formed.