Healthcare providers will be forced to become more pre-conscious and cost-effective if HMOs gain market shares. HMOs reduce costs through fixed budget financing, reduced inpatient utilization by keeping customers out of hospitals, and using fewer resources once a customer is admitted. If HMOs control significant amounts of patient volume, the
Healthcare providers will be forced to become more pre-conscious and cost-effective if HMOs gain market shares. HMOs reduce costs through fixed budget financing, reduced inpatient utilization by keeping customers out of hospitals, and using fewer resources once a customer is admitted. If HMOs control significant amounts of patient volume, the