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Issue Date: July 1997


Minnesota Employers Elevate Physicians’ Status by Eliminating Middlemen
This year, about 7,000 Minnesota physicians—most of them in Minneapolis-St. Paul—began contracting directly with the Buyers’ Health Care Action Group (BHCAG), a coalition of 28 self-insured employers. The health plan, called Choice Plus, eliminates utilization review and makes physicians accountable for costs, quality, and patient


Tackle the Hard Issues Early When Forming an IDS
As a physician, chances are that you are affiliated with an integrated delivery system (IDS) of some form—a physician-hospital organization (PHO), a management service organization, a physician practice management company (PPMC), a medical group, or an independent practice association that contracts with an IDS. Regardless of the form


Like Other Specialists, Cardiologists Find Value in Practice Management Companies
Specialists are finding that they need to accept risk-sharing contracts with payers to protect their income and to be able to negotiate from a position of strength. One way to do so is to affiliate with a physician practice management company (PPMC) for the expertise needed to profit under


Emerging Role of the Inpatient Manager
Physicians have protested loudly about the financial constraints managed care organizations have placed on them and their patients. In fact, many physicians argue that cost containment means quality containment. Fortunately, outcomes do not support these fears. Patient satisfaction rates are stable, readmission rates are no greater than in the fee-


Why Management Service Organizations Make Sense for Physician Groups
Q:What is the definition of a management service organization (MSO)?
A:In the broadest sense, an MSO provides managed care contract administrative services or practice management services to physicians and medical groups. It can be owned by physicians, hospitals, private investors, or any combination of these entities. In


Market for Practice Management Companies Is Turbulent, But Potentially Attractive
Physician practice management companies (PPMCs) are continuing to raise large amounts of capital in the public markets, even though the market for publicly traded PPMC stocks remains turbulent. This situation should lead investors to evaluate carefully any proposed offerings by PPMCs.
After-market Performance
In the first quarter




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