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Issue Date: February 1998


Group Struggles, then Succeeds, with Guidelines
As managed care becomes more widespread, physicians are encouraged to improve efficiency in many practice settings. Although capitation (especially for Medicaid patients) was not present in a significant way in the Houston hospital market until late last year, physicians and hospital administrators at the Hermann Children’s Hospital in Houston


Hazards of Physician Consolidation
Take back control!” has become a rallying cry among physicians. Used in this way, “control” generally means forming organizations that can compete effectively with other health care providers, such as hospitals and managed health plans. Physicians have found they can compete by forming multispecialty groups, assembling regional specialty groups or


Failed PPMC Deal Reflects New Realism
The failure of the merger of PhyCor and MedPartners has raised new questions about the two companies and about physician practice management companies (PPMCs) in general. On Jan. 8, the two companies called off their $6.8 billion merger, and the stock prices of the two companies dropped to new


New Models of Development Offer Insight
Physicians need to examine and understand thoroughly their local health care markets for many reasons. They may need to determine if their rates are competitive; they may want insight into whether they should affiliate with other physicians or with a local hospital; or they may seek to discern the future


Physicians Will Need to Balance Autonomy With Accountability
Q: First, let me congratulate you, Michael, on the recent publication of your book. What has been the response to it by reviewers and the public?
A:Prepublication reviews in Publishers Weekly and Library Journal were very positive, as was a recent review in The New York Times Book


PSO Regulations Will Be Demanding
The Balanced Budged Act of 1997, which became law on Aug. 5, created a new opportunity for physicians. The act allows physicians and entities to form provider-sponsored organizations. PSOs are health plans owned by providers that may be offered to Medicare recipients as an alternative to the traditional fee-


PPMCs Are Raising Capital at a Blistering Pace
Physician practice management companies (PPMCs) raised $2 billion last year, a 6% increase over 1996 levels. PPMCs entering the public markets for the first time account for a substantial portion of this amount. As of Dec. 31, 1997, publicly traded PPMCs numbered 44, comprising 29 single-specialty organizations and 15




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