Managed Care Profits Set To Rise In 1997

Managed care industry profits will rise 13% in 1997 to nearly $3.3 billion, after dropping 20% in 1995 and 10% in 1996, according to a new managed care industry forecast issued by the Corporate Research Group in the USA.

Health maintenance organization revenues are expected to grow nearly 15% next year to around $126 million, as the industry attempts its first significant price increase since 1994, the report notes. Premiums were flat-to-down in 1995 and 1996.

"The Outlook for Managed Care 1997" forecasts enrollment growth slightly below the 14% of this year. The best gains should come in Medicare members, with HMOs enrolling nearly 1 million new Medicare beneficiaries in 1997. Company president Effrem Sigel said that states offering the best potential for HMO growth include Texas, Florida, Pennsylvania, Ohio, North Carolina, Virginia and Missouri.