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Correspondence
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Volume 328:971 April 1, 1993 Number 13
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Do Health Maintenance Organizations Control Costs or Shift Costs?

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To the Editor: In the current debate on health care, the performance of health maintenance organizations (HMOs) is often touted as showing how rising health care costs can be controlled while quality of care is ensured. As a practicing physician in Minneapolis, I wish to offer a dissenting view. Public data obtained from Health Information Resources of Minnesota suggest that, to a large extent, HMOs in Minneapolis achieve savings for their plans merely by shifting costs to patients covered by private insurance, not by actually containing the costs1. They do this by negotiating discounted rates with hospitals that may . . . [Full Text of this Article]

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