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Int J Health Care Finance Econ. 2004 Dec;4(4):327-42.

The impact of ownership conversions on HMO performance.

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  • 1Division of Health Services Research and Policy, School of Public Health, University of Minnesota, Mayo Mail Code 729, 420 Delaware St. SE, Minneapolis MN 55455, USA.


Recently, several Blue Cross plans that sponsor Health Maintenance Organizations (HMOs), among other insurance products, have sought regulatory approval to convert from a not-for-profit to a for-profit entity. We examine the impact of not-for-profit HMOs converting to for-profit status in a fixed-effects framework using HMO level data from InterStudy. Our findings indicate conversions to for-profit status do not significantly impact HMO prices, profit margins, use of hospital days or ambulatory visits, and the provision of Medicare and Medicaid products.

[PubMed - indexed for MEDLINE]
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