Financial Stability Of HMOs Called A Mixed Bag

An HCIA-Sachs survey says the median HMO profit margin in 1998 was –1.7 percent, slightly better than in 1997. Forty-one percent of HMOs made money in 1998.

Some marquee organizations are rebounding. Not-for-profit Kaiser Permanente ended 1999 with a net loss of $6 million, far from its $288 million net loss in 1998. On the for-profit side, Foundation Health’s net income in 1999 was $142 million, compared with a net $165 million loss the previous year.

Many others, however, are still struggling. Aetna Inc. said it would split into separate “health and wealth” businesses — evoking memories of days before Aetna’s corporate culture smothered U.S. Healthcare’s inventiveness, say some observers. Aetna spurned a purchase offer from WellPoint Health Networks, opting instead for the restructuring plan.

In Massachusetts, Harvard Pilgrim Health Care will continue as a not-for-profit entity, after state officials restructured its debt and agreed its business plan was solid enough to get it into the black by next year. Some large for-profit plans that had considered buying Harvard Pilgrim subsequently expressed concern about entering Massachusetts, where opposition to for-profit care is strong.

Meetings

HealthIMPACT Southeast (link is external) Tampa, FL January 23, 2015

Our other journal

P&T Journal for November 2014

Features

LETTER TO THE EDITOR

Medications for Parkinson’s Disease (link is external)

PERSPECTIVE

The Changing Roles of P&T Committees (link is external)

Epilepsy Management: Newer Agents, Unmet Needs, and Future Treatment Strategies (link is external)

PIPELINE PLUS

Modest Growth Seen in Epilepsy Market (link is external)

MEETING HIGHLIGHTS

European Society of Cardiology and Transcatheter Cardiovascular Therapeutics (link is external)

BOOK REVIEW

“Generic: The Unbranding of Modern Medicine,” by Jeremy A. Greene, MD, PhD (link is external)

DEPARTMENTSMEDICATION ERRORS

Misadministration of IV Insulin Associated With Dose Measurement And Hyperkalemia Treatment (link is external)

PRESCRIPTION: WASHINGTON

FDA’s Proposed 503B Draft Compounding Guidance Raises Concerns of All Kinds (link is external)

New Drugs/Drug News (link is external)

Pharmaceutical Approval Update (link is external)

DRUG FORECAST

Riociguat (Adempas): a Novel Agent For the Treatment of Pulmonary Arterial Hypertension and Chronic Thromboembolic Pulmonary Hypertension (link is external)

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