The Impact of Ownership Conversions on HMO Performance

Robert Town, Roger Feldman and Douglas Wholey

International Journal of Health Economics and Management, 2004, vol. 4, issue 4, 327-342

Abstract: 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.

Date: 2004
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International Journal of Health Economics and Management is currently edited by Leemore Dafny, Robert Town, Mark Pauly, David Dranove and Pedro Pita Barros

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