Condition Critical

Urban HMOs are struggling to stay afloat

the government to make sure the program is [unchanged] for a while,” says Crawford. “It’s very hard to plan a business around a partner whose policies and financial commitment can turn almost on a dime.”

While shifting economics and government spending patterns are crippling urban-based HMOs, the ones hurting the most are the clientele who live on fixed incomes and are forced to contend with fewer medical choices and services. As Crawford laments, “There’s an economic consequence, but the social consequences are really a shame.”

HMO Medicaid Plans

Plan Name Disposition
Total Health in receivership
DayMed Changed ownership, subsequently moved into receivership
Unity HMO Exited Medicaid market
Mississippi Managed Care Network Closed
Family Health Care Plus Exited Medicaid market
Xantus (formerly Phoenix Healthcare) In receivership
UHP Healthcare/Watts Health Foundation Under state supervision/management (leadership replaced)
Tennessee Coordinated Care Network State Medicaid contract pulled, plan/company closed

Source: National association of urban-based HMOs

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