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Biotech / Medical : FPA Medical Management - FPAMQ
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To: RealMuLan who wrote (1036)7/23/1998 6:33:00 PM
From: AC   of 1110
 
Actually, the HMOs are the only ones making money in today's managed care environment, except for Oxford but that's another story of inept company mgt. When I worked at a large HMO, every new contract was rigged to put all the financial risk onto the doctor groups, which is where we are today.

The docs may be complaining about their lower salaries, but then again they're the ones who started the HMO trend by over-charging for their services in the past.

I wouldn't touch any PPM stock in the future until they can show some cost cutting discipline or more leverage against the HMOs. IMHO....
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