News and Commentary

Fallout from the "new economy": claims payment slower than ever


With investors moving their money from health care to technology over the last few years, the cash stash that some for-profit systems had enjoyed has shriveled. A new InterStudy Publications report says HMOs relied heavily on investor funds during the 1990s to cover medical and operational expenses, and premiums alone were not enough. The resulting cash crunch means health plans are taking longer than ever to pay claims.

SOURCE: HMO FINANCIAL BENCHMARKING GUIDE, INTERSTUDY PUBLICATIONS, BLOOMINGTON, MINN., 2000

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