HMOs Are Creating More Dissatisfied Customers
Consumes are increasingly dissatisfied with the customer service of managed care plans, according to a national survey by Hewitt Associates, a global management consulting firm in Lincolnshire, Ill.
Twenty-percent of Americans are unhappy with their managed care plans, up from 17 percent in 1997.
Across all geographic regions, consumers have become frustrated with their managed care plans, preferred provider organizations and point of service plans, according to the survey.
The study represents the opinions of nearly 150,000 U.S. employees participating in more than 600 managed care plans nationwide.
The primary problem is with administrative breakdowns and an overall difficulty with resolving coverage issues. For instance:
- 34 percent of employees are unhappy with their plans' ability to solve problems, up from 29 percent in 1996.
- 30 percent are dissatisfied with their plans timeliness, professionalism or accuracy, up from 17 percent in 1996 and 24 percent in 1997.
(Hewitt Associates, Kelly Zitlow, 847/442-7648)
Boomers To Face Higher Cancer Rates
Now is the time to target Baby Boomers with educational messages about cancer, as they will soon be at a higher risk of experiencing certain forms of cancer. Starting in 2011, people reaching age 65 are likely to have higher rates of prostate, lung cancer and non-Hodgkin's lymphoma, according to preliminary research by SRI Consulting, a market research firm in Menlo Park, Calif.
SRI's cancer study, Cancer in the New Millennium, will be available in October and will provide an analysis of worldwide cancer trends through 2015.
Preliminary highlights include:
- By 2029, 20 percent of the U.S. population will be 65 or older and will require increased healthcare; and
- 14 percent of the current U.S. population, or 38 million adults, is 65 or older; by 2029, that number is expected to increase to approximately 62 million.
The study will address treatment protocols by cancer, stage and country, an assessment of new approaches to cancer therapy, treatment cost trends and new technology demands.
(SRI Consulting, Mary Smith, 617/689-0345)
Pa. Hospital Reimbursements To Plummet
The Hospital & Healthsystem Association of Pennsylvania (HAP) is forecasting a dire financial picture for the state's hospitals as a result of federal Medicare payment reductions mandated by the Balanced Budget Act of 1997. Providers need to have up front discussions now with the public about how these cuts will affect patient care.
A study conducted by the market research firm, Lewin Group and commissioned by the American Hospital Association, found that national Medicare margins for hospitals will fall to a negative 7.8 percent by the end of the five-year life span of the budget act in 2002. In Pennsylvania, this margin will drop to a negative 8.4 percent.
Nationwide, hospitals can expect $18 billion more in cuts than the initial $53 billion intended by Congress, according to the report. The report also highlights:
- Home healthcare services will be hit hard by reimbursement cutbacks with national margins dipping to negative 11.4 percent by 2002 and Pennsylvania home health margins dropping to negative 5.2 percent in the same period.
- Outpatient services will have a similar fate, declining to negative 28.8 percent nationwide by 2002 and negative 27.2 percent in Pennsylvania.
The Lewin report is based on fee-for-service Medicare services data from fiscal year 1995 and 1997 AHA survey information. The HAP survey is based on responses from 179 hospitals.
(HAP, Lewis C. Gable, 717/564-9200; Lewin Group, http://www.lewin.com)