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PSOs--an opportunity or figment of the imagination?

This article explores whether Provider-Sponsored Organizations (PSOs) offer providers a tangible opportunity. It describes Crozer-Keystone's participation as a PSO in HCFA's Medicare Choices Demonstration Project. This organization is an integrated system in suburban Philadelphia. Although the financial results to date have not been encouraging, opportunities exist for developing partnerships with physicians and patients.

Centers for Medicare and Medicaid Services, U.S.↗

Medicare program; solvency standards for provider-sponsored organizations. Health Care Financing Administration (HCFA), HHS. Final rule.

The Balanced Budget Act of 1997 established a new Medicare+Choice (M+C) program that offers eligible individuals Medicare benefits through enrollment in one of an array of private health plans that contract with us. Among the new options available to Medicare beneficiaries is enrollment in a provider-sponsored organization (PSO). This final rule revises and responds to comments on solvency standards that certain entities must meet to contract as PSOs under the new M+C program. These standards, originally established in an interim final rule published on May 7, 1998, apply to PSOs that have received a waiver of the requirement that M+C organizations must be licensed by a State as risk-bearing entities.

Financial Management↗

Medicare HMO exodus: system correction or prediction?

In a blow to seniors, numerous HMOs made a hasty withdrawal from the Medicare market, citing increased costs and inadequate federal reimbursement. This action forced more than 400,000 Medicare recipients to scramble for health coverage. In some parts of the country, coverage through a managed care plan may not be available, resulting in higher out-of-pocket costs. Even more disconcerting is the potential loss of added non-Medicare benefits, such as prescription drugs, eyeglasses, and dental care for those who return to traditional Medicare. Policymakers at all levels are searching for solutions to this disruption in health care delivery. Events such as this demonstrate the critical relationship between the mechanism of financing and service delivery.

Aged↗

Private contracting.

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Centers for Medicare and Medicaid Services, U.S.↗