Managed Care Case Study

For the most part, professional would concur that the PPM business model was centered around wrongful, inaccurate theories, that managed care would cause “global capitation, a preset limitation of One of the build-ups of PPM’s is that they could possibly go in and assist the medical doctors with managed care and improve the medical doctor’s standing with managed care disbursements per each individuals, in spite of how much medical services the individual will receive. Of course, this was a total miserable letdown. Capitation withdrew and did not enlarge like all the people assumed it would. It appears that individuals like to have an option or selection within medical care and some are more reluctant to shell out a little bit of money for their medical …show more content…
In 1997 and 1998, the rising cost of healthcare and related problems at its clinics led to a series of write-offs. After several years of expanding profits, PhyCor realized only a $3.2 million profit on $1.1 billion in revenues in 1997. An asset revaluation charge of $83 million in late 1997 was one of many such write-offs. In 1998 write-offs included a $20 million charge after dissolution of a merger with MedPartners and a $65 million charge to reorganize four unprofitable clinics. Another $120 million restructuring charge was related to duplicate information systems at multispecialty clinics created by PhyCor by merging single-specialty clinics. While financial hardships increased, the organization shifted paths, choosing management service contracts without the danger of obtaining health care clinics. Around March 1998, North American Medical Management Company, Inc. (NAMM) contracted with New York and Presbyterian Hospitals Care Network. These health care services consisted of the development of over 40 minor IPA’s for medical doctors in the