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Fundamentals of HMOs 
 
By Molly Shapiro 
 
2005/08 - Beard Books - Reprint 
1587982544 - Paperback - 268 pp. 
US$34.95
A revealing insight into the thinking and operations of HMOs. 
Publisher Comments
 
In this informative book, with a current Preface, the reader will gain an understanding of how HMOs operate.  The book helps the reader understand in clear terms many of the controversial issues that surround this industry.  For example, the insurance companies and the HMOs have been criticized and even vilified for the medical conditions that they will or will not cover.  It is in this light that the book also addresses patients’ rights.  The purpose of this book is to create an overall awareness of the unique dynamics created by the HMO model and to stimulate change where appropriate. 
From the back cover blurb: 
Do you ever wonder what HMOs are doing for you or what they should be doing for you?  Look no further.  Molly Shapiro, a registered nurse with a master's degree in business administration and a doctorate in education is an expert on the subject.  In this book, with an updated preface, she will answer your questions, tell you what your rights are, who the players are, and how they think. 
The author discusses at length why HMOs, health care providers, hospitals and bureaucrats behave so recklessly with our health issue.  The reason is simple.  We are dictated to by insurance companies and the HMOs, and there are no alternatives, no competitive suppliers to turn to.  We are not consulted in something very important to us--our own health care.  The goal of this book is to create awareness of the problems and to stimulate controversy and change. 
 
 From Henry Berry, Nightingale's Healthcare News: 
 
As a nurse, Molly Shapiro is practical minded about healthcare and sympathetic with a patient’s position and concerns. As a person with advanced degrees in business and education, she grasps the bureaucratic, economic, and social complexities of a U.S. health system that is dominated by health maintenance organizations (HMOs). For this system to meet the needs and goals of all parties, “a realistic compromise must occur by all,” she writes. 
 
In Fundamentals of HMOs, which was originally published in 1999, Shapiro discusses how this realistic compromise might be crafted, and explains the place, roles, aims, and constraints of the different people (e. g., doctors and administrators) and different institutions in a vast healthcare system. Sitting at the center of this vast system are HMOs. In one chapter, a chart entitled “Integrated Delivery Systems” has an HMO in a small box in the middle of it. The primary purchasers of medical services – the federal and state governments and employers – are on the left side of the chart with lines leading to the boxed HMO. On the right, also connected by lines from the box, are the healthcare providers, including treatment facilities, clinics, and hospitals. This chart illustrates the HMO’s central, key position in the healthcare system. A position, says the author, that can either be a “funnel or a bottleneck...because everyone [from the federal government to patients] must move through their web.” 
 
One of the book’s primary accomplishments is to explain this complex organization in a straightforward manner. Shapiro recognizes that an understanding of the central role of HMOs must begin with a discussion of these healthcare system stakeholders linked to HMOs. Accordingly, the author has chapters on each of them. However, even when she is focused on one part of the system for the education of the reader, her focus is such that the part’s relation to the whole is realized.  
 
Shapiro then poses and answers key questions, for example: On whose side is the hospital system? And what is your right to healthcare as a managed care patient? In tackling these basic questions, she breaks down the complexities and presents a clear picture of the problems confronting the healthcare system.  
 
This could not be done without Shapiro’s knowledge of legislative processes; her familiarity with the profit-making psychology of capitalism; and her appreciation of the frustrations of caregivers, the ambivalence of doctors, and the bewilderments and apprehensions of patients. Shapiro also understands American culture with regard to healthcare, including not only the profit motive but also the concern for the less fortunate. This calls for an American remedy to the problems with the healthcare system at home rather than adoption of a Canadian, British, or Scandinavian system as recommended by some. 
 
Shapiro acknowledges she does not have the answer to fixing the healthcare system; though she offers many relevant, practicable suggestions that would make parts of it better. “My hope is to lay out the situations [and] identify the stakeholders and their behaviors,” Shapiro writes. Getting the best healthcare possible under the circumstances and improving the system is left up to others.  
 
The author also recommends a “healthcare bill of rights,” which some states have adopted. In lieu of an improved healthcare system, this bill of rights would give patients some specified, recognized rights within the system. A healthcare bill of rights is especially desirable because in most cases it is no longer individuals – patients – who are consumers of health services, but rather “employers and the government...since [e]mployers buy you benefits as an employee, and governments buy benefits for the elderly or poverty patients.” Though Shapiro does not explicitly put it this way, this situation is healthcare without representation. Nearly everyone accepts the healthcare that has been chosen for them by employers and governments. When individuals have little input with regard to the decisions, maintenance, or quality of the system, it is not surprising that the system is resistant to change. 
 
Because it is unlikely that there will be substantial improvements in the healthcare system any time soon, it is crucially important for individuals to understand the organization and workings of the system. This will give them some power, limited as it may be, to do what they can to ensure they get the best healthcare possible under the circumstances. Fundamentals of HMOs accomplishes this task because of the author’s singular attributes of extensive experience within the HMO-dominated system, an empathetic understanding of patients’ interests, and constant awareness that the purpose of any system labeled a healthcare system is the good health of particular individuals. 
 
A nurse since 1984, Molly Shapiro practices in the emergency room and intensive care unit at a Rochester, MN, hospital. She also manages a healthcare consulting business, teaches graduate courses in healthcare, and writes articles for professional periodicals. 
 
  
 Molly Shapiro has been a nurse since 1984.  She holds MBA, MS, and BS degrees from the University of Colorado.  She received a Ph.D. in Education from Columbus University in Louisiana.  Ms. Shapiro practices ER and ICU nursing at a community hospital and clinic in Rochester, Minnesota.  She teaches graduate school at Winona State University, and has written a number of professional articles.  She also manages a health care consulting business. 
  
  
    
      | INTRODUCTION: WHY A BILL OF
        RIGHTS | 
      7 | 
     
    
      | CHAPTER 1: | 
      WHAT PROMPTED THE HMO CONCEPT? | 
       | 
     
    
       | 
      Consumerism 
        History 
        Diagnostic Related Groupings or DRGs 
        Downsizing 
        A Crowded Playing Field 
          | 
       | 
     
    
      | CHAPTER 2: | 
      WHAT IS YOUR RIGHT TO HEALTH CARE AS A
        MANAGED CARE PATIENT? Is Health Care a Right or an Individual
        Reponsibility? | 
      16 | 
     
    
       | 
      Americans Who Have a Right to Health Care 
        Americans Who Have a Responsibility for Health Care 
        Universal Access 
        A Federal Bill of Rights for HMO Patients 
        A State Bill of Rights for HMO Patients 
        Which Move Affects Who? 
          | 
       | 
     
    
      | CHAPTER 3: | 
      WHO ARE THE PLAYERS? | 
      22 | 
     
    
       | 
      Rational Behaviour 
        When Ine Change Affects Many 
        Integrated Health Care Networks 
        The Demand for Health Care 
          | 
       | 
     
    
      | CHAPTER 4: | 
      ON WHOSE SIDE ARE PROVIDER GROUPS? | 
      27 | 
     
    
       | 
      Catch-Up Economics 
        Power Shifts from Physicians to HMOs 
        Provider-Sponsored HMOs 
        Physician-Sponsored Hospitals 
        Conceptual Flaws 
        Accountability 
        Added Complexities 
        Cooperative Care 
        Advantages of Cooperative Care 
        Disadvantages 
       | 
       | 
     
    
      | CHAPTER 5: | 
      ON WHOSE SIDE IS THE HOSPITAL SYSTEM? How Are
        Treatment Centers Thinking? | 
      38 | 
     
    
       | 
      Hospital Networks 
        Advantages of Hospital Networks 
        Conceptual Flaws 
        A Different Mission: Research and Education 
        Scarce Health Care Resources 
        Scarce Human Resources 
        Balancing Yin and Yang 
          | 
       | 
     
    
      | CHAPTER 6: | 
      ON WHOSE SIDE IS YOUR STATE? On Whose Side Is
        Your Employer? | 
      44 | 
     
    
       | 
      State Innovations 
        How Much Is Too Much? 
        Legislators' Interests 
        Conceptual Flaws 
        One State's Solution 
        Conceptual Flaws 
        For You to Get Rights, You Will Pay More than Your Share 
        Conclusion 
          | 
       | 
     
    
      | CHAPTER 7: | 
      ON WHOSE SIDE IS YOUR HMO OR OTHER MANAGED
        CARE ORGANIZATION? | 
      53 | 
     
    
       | 
      Economies of Scale 
        Managed Competition 
        Conceptual Flaws 
        The Challenge 
        Monitors 
          | 
       | 
     
    
      | CHAPTER 8: | 
      ON WHOSE SIDE IS YOUR CASE MANAGER? And How
        Is Care Managed? | 
      63 | 
     
    
       | 
      History 
        Seamless Support 
        Protocols 
        Outcomes Mandated by the NCQA 
        How to Take More Responsibility in Your Care 
        Holding Treatment Centers Accountable 
        Disadvantages of Case Managers 
        Advantages of Case Managers 
        Conceptual Flaws 
        Conclusion 
          | 
       | 
     
    
      | CHAPTER 9: | 
      ON WHOSE SIDE IS THE FEDERAL GOVERNMENT? How
        Is Rationing Used? | 
      72 | 
     
    
       | 
      Federal Goals 
        Asymmetric Information 
        Supply and Demand 
        Rationing 
        Rationing that Increases Supply 
        Advantages of Nurses as Primary Care Providers 
        Disadvantages of Nurses as Primary Care Providers 
        Increasing Competition in Health Care 
        Myths and Rebuttals to Diluting Care 
        What Happens If HMOs Are Forced to Take on High-Risk Patients? 
          | 
       | 
     
    
      | CHAPTER 10: | 
      WHERE DO YOU DRAW THE LINE? What About
        Standards or Quality Care? | 
      84 | 
     
    
       | 
      Drawing Boundaries in Efficiency and Equity 
        Drawing Boundaries in Outcome Measures 
        Challenges in Collecting Outcomes 
        Acknoledging Adverse Outcomes 
        Long-Term Effects 
        Other Long-Term Implications 
        Drawing Legal Boundaries 
        Drawing Ethical Boundaries 
        Drawing Boundaries in Protocols 
        Conclusion 
          | 
       | 
     
    
      | CHAPTER 11: | 
      HOW IS MANAGED CARE CREATING PROGRESS? Why Is
        Health Care For Profit? | 
      94 | 
     
    
       | 
      Implications 
        A Lesson Learned from Canada 
        Making Organ Donation Self-Sufficient 
        Making Organ Donation Profitable 
        Advantages 
        Disadvantages 
        Conclusion 
          | 
       | 
     
    
      | CHAPTER 12: | 
      WHAT ARE ALTERNATIVE SOLUTIONS? | 
      101 | 
     
    
       | 
      Implications 
        A Lesson Learned from Canada 
        Making Organ Donation Self-Sufficient 
        Making Organ Donation Profitable 
        Advantages 
        Disadvantages 
        Conclusion 
          | 
       | 
     
    
      | CHAPTER 13: | 
      WHAT HAPPENS AS THINGS CHANGE? | 
      125 | 
     
    
       | 
      Mergers and Acquisitions 
        Prevention 
        Consumer Awareness 
        Disease Management 
        Assisted Living 
        Too Much Change Too Fast 
        Alternative Therapies 
        Conclusion 
          | 
       | 
     
    
      | CHAPTER 14: | 
      HOW WILL MANAGED CARE HURT PROGRESS? | 
      131 | 
     
    
       | 
      Winners and Losers 
        Designer Drugs: Statins and Viagra 
        Who Gets Designer Drugs? 
        Costs of Designer Drugs in Health Care 
        Consumer Sovereignty 
        Conceptual Flaws in CEA 
        Economic Malpractice 
          | 
       | 
     
    
      | CHAPTER 15: | 
      SO WHAT HAPPENS NEXT? What Does the Future
        Hold? | 
      142 | 
     
    
       | 
      Information Technology 
        Convenience in Health Care 
        Quality of Life Issues 
        Consumer Demand Accountability 
        Cost Constraints Spawn New Models 
        Predictions for the Future of Health Care 
          | 
       | 
     
    
      | CHAPTER 16: | 
      WHAT ARE YOUR RIGHTS? | 
      150 | 
     
    
       | 
      A New Health Care Bill of Rights 
        The Theory of Regulation 
        Who Should Ration Your Care? 
        Coming Full Circle Consumerism 
          | 
       | 
     
    
      | INDEX | 
      156 | 
     
    
      |   | 
     
    
      | The original title of this work
        was What You Need to Know about HMOs and the Patient's Bills of
        Rights.  The title has been changed by Beard Books to
        facilitate electronic retrieval and/or to reflect the current conditions
        in the subject are. | 
     
   
 
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