Managed Care On-Line™: Surveys


National Study Finds Seven of 10 Physicians Are Anti-Managed Care; HMOs  Still 
                Rank Highest Among Physicians in Several Markets                
Press  Release - Sept. 14, 1998
Nearly seven of 10 physicians consider themselves "anti-managed care," according to a national 
study conducted by The MEDSTAT Group and J.D. Power and Associates which 
surveyed nearly 30,000 physicians about 150 health plans in 22 markets. While 
physicians expressed dissatisfaction with managed care in general, HMOs in 
several markets ranked higher than non-managed care plans. This finding is 
consistent with that from the enrollee study of plan performance conducted by 
The MEDSTAT Group and J.D. Power and Associates earlier this year.

"Physicians provide a unique perspective of health plan performance," said Ron 
Conlin, partner, J.D. Power and Associates, "because physicians have 
experiences with plans that are not available to consumers and employers. In 
fact, the study shows that physicians tend to be much tougher evaluators of 
health plans than enrollees," he added.

The top-ranked plan in each market is identified in Table I attached. 
Physicians Desire Autonomy

Results of this study clearly indicate that physicians want to operate with 
maximum independence and minimum interference from health plans. More than 75% 
of responding physicians indicated that "having to justify my clinical 
decisions to others is annoying." In addition, half of the physicians reported 
"being profiled on utilization and satisfaction makes me mad," and 42% 
indicated that they feel "costs of care should never be considered in making 
clinical decisions." "These results highlight the enormous challenge facing the 
healthcare industry -- reducing costs while being held increasingly accountable 
for the quality of care provided," said Dennis Becker, Senior Vice President, 
The MEDSTAT Group. "And, the industry must do this in partnership with 
physicians who, for the most part, are extremely independent, and many of whom 
are not concerned with cost considerations," he added.  Impact On Consumers

Physician ratings of health plan performance are important to consumers for two 
reasons. First, physicians can identify those plans that are applying too much 
pressure to reduce costs at the expense of quality care. Almost one-third of 
responding physicians indicated that "being pressured to withhold specific 
patient services that could improve care" is a serious problem with the plans 
they work with. Second, when physicians are unhappy with a plan's performance, 
they will stop contracting with that plan -- resulting in consumers having to 
change providers or obtain services outside their network, often at higher 
costs. The study reveals that half of the physicians who are dissatisfied with 
a plan's overall treatment of physicians would "probably" or "definitely" 
remove the plan from their practice.  Impact On Physicians

The push to integrate cost consciousness with quality is taking its toll on 
physicians. As a result, physician morale is sinking across the nation. The 
study reveals that not only do 36% of physicians indicate their morale is low, 
but perhaps more importantly, 53% indicate it has gotten worse over the past 
year. In fact, more than 46% of respondents indicated they "often think about 
leaving clinical practice."  What's Most Important To Physicians?

The study identifies five major factors that drive physicians' ratings of plan 
performance. The two most important are Satisfaction With Financial 
Reimbursement and Administration. The other three factors are: Limits On Care, 
Policies Impacting Quality Of Care, and Support Of Clinical Practice. The 
opportunity for improvement is significant. For example, in the administrative 
area, 29% of physicians indicated that getting help with appeals for denied 
claims was a "major hassle," and 27% indicated the same about the paperwork 
burden.

The MEDSTAT Quality Catalyst Program is conducted by The MEDSTAT Group in 
alliance with J.D. Power and Associates and New England Medical Center.

The MEDSTAT Group specializes in the strategic application of healthcare 
information and offers knowledge-based systems, research, and consulting 
services for improving the quality and total value of healthcare. Headquartered 
in Ann Arbor, Michigan, with offices nationwide, the company serves clients 
across the entire healthcare spectrum -- purchasers of healthcare benefits, 
providers of care, managed care and insurance organizations, state government, 
federal policymakers, and federal and pharmaceutical researchers. The MEDSTAT 
Group is a Thomson Healthcare Information company.

J.D. Power and Associates is one of the world's premier marketing information 
firms and is well-known for its expertise in the area of customer satisfaction 
measurement. Internationally-recognized as the "voice of the consumer" and for 
its role in transforming how the automotive industry views quality, J.D. Power 
and Associates has extended its expertise to other industries, including 
healthcare.

The Boston-based New England Medical Center has an extensive background in 
surveying the physician population through its Primary Care Outcomes Research 
Institute, directed by Sheldon Greenfield, M.D., and Sherrie Kaplan, Ph.D., 
M.P.H. The team is renowned in the arenas of healthcare and quality of care 
research, complex statistical analyses, and patient involvement in healthcare. 
New England Medical Center is the newest member of Lifespan Health System.

This press release is provided for editorial use only. Charts and graphs 
extracted from this press release must be accompanied by a statement 
identifying The MEDSTAT Group as the publisher, and The MEDSTAT Quality 
Catalyst(TM) Program as the source. No advertising, marketing, or other 
promotional use can be made of the information without the express prior 
written consent of The MEDSTAT Group.

Table I

                         
               The 1998 MEDSTAT Quality Catalyst Program

                Top-Ranked Health Plan Among Physicians

              

              

Market                          Top-Ranked Health Plan And Type(a)

              

Atlanta                         Kaiser Permanente HMO

Baltimore-Washington            National Capital Area Plan PPO

Boston                          Tufts Health Plans HMO

Central Valley, California      Blue Cross Prudent Buyer PPO

Chicago                         Blue Cross Blue Shield of Illinois FFS

Cleveland-Akron                 Medical Mutual of Ohio FFS

Dallas-Fort Worth               Prudential HealthCare FFS

Dayton-Springfield, Ohio        (b)

Grand Rapids-Muskegon, Michigan Priority Health HMO

Hartford, Connecticut           ConnectiCare HMO

Houston-Galveston               United HealthCare PPO

Indianapolis                    (b)

Kansas City                     (b)

Lansing, Michigan               Blue Cross Blue Shield of Michigan

                                FFS/PPO

Los Angeles-Orange County       Blue Cross Prudent Buyer PPO

Memphis                         Baptist & Physicians PPO

New York City Area              United HealthCare HMO/POS

Northern New Jersey             Oxford Health Plans HMO/POS

Philadelphia                    Personal Choice PPO

Phoenix                         Blue Choice HMO

San Francisco Bay Area          Kaiser Permanente HMO

Southeast Michigan              Blue Cross Blue Shield of Michigan FFS

              

              

(a)  HMO = Health Maintenance Organization

     POS = Point-of-Service plan

     PPO = Preferred Provider Organization

     FFS = Fee-for-service plan

(b)  No single plan scored significantly above other plans in this

     market, or the major plan(s) in the market are not adequately

     represented.

-0- tmf/clv*

CONTACT:  The MEDSTAT Group            Andree Joyaux, 734/913-3295


 

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