Massachusetts' largest HMO, Harvard Pilgrim Health Care, was placed under state receivership last month as a result of severe operating losses in 1999. The concentration of HMO enrollment within Harvard Pilgrim and a small number of other plans in the Massachusetts market (see data below) leave providers with siginificant financial exposure for unpaid claimes. While Massachusetts officials work on a solution, providers are anticipating short-term cash flow disruptions and operational difficulties. Unfortunately for providers, in a market so dominated by a small number of plans, the luxury of selecting your payers (and thereby financial partners) is fleeting.
See publication for the following tables:
- HMO, hospital, PPM and healthcare information technology indexes compared with the S&P 500
- Healthcare service companies' change in market capitalization
- Massachusetts HMO market share
- Harvard Pilgrim health care....by the numbers