Managed care industry profits are expected to top $3 billion with for-profit companies leading the way. This represents a 60% surge from last year, according to a study
published by Corporate Research Group in New Rochelle, N.Y.
The report raises concerns about the survivability of not-for-profit companies, which are reeling from big losses over the last year. Harvard Pilgrim, which lost $150 million
and Tufts Health Plan, which lost $45 million, are key examples. Kaiser Permanente, the biggest not-for-profit company, has only recently managed to return to profitability after
two years of losses.
Overall, managed care industry revenues should grow to $176 billion this year from $162 billion in 1999.
But the industry will continue to be plagued by negative consumer backlash and an onslaught of class action lawsuits from disgruntled health plan members.
The largest managed care companies, based on 1999 revenues are:
- UnitedHealth: $19.5 billion;
- Aetna: $19.3 billion;
- Kaiser: $16.6 billion; and
- Cigna: $13.5 billion.
The report, which costs $1,195, contains 45 company profiles.
(Corporate Research Group, Efrem Siegel, 914/235-6000)