Recent laws in New Jersey and California represent a disturbing trend that will negatively impact a practice’s ability to collect monies from patients, as well as expose them to significant penalties if the practice does not follow the mandatory guidelines to a T. Please be aware that a similar law may be coming to your state. The time to act is before the law is passed.
Growth of Managed Care
Managed care enrollment in the United States is growing at an unprecedented rate. The number of Americans enrolled in preferred provider organizations (PPOs) increased by more than 32 percent in 1993. The number enrolled in health maintenance organizations (HMOs) increased by over 9 percent.
HMOs
1992 -- 38.8 million enrollees
1993 -- 42.3 million enrollees
PPOs
1992 -- 58 million eligible enrollees
1993 -- 76.6 million eligible enrollees
SOURCE: 1. InterStudy
2. American Association of PPOs