Patient Listed as Critical: For Investors in United American Healthcare, This HMO's Vital Signs Are Weak

By Oestricher, Dwight | Black Enterprise, January 1998 | Go to article overview

Patient Listed as Critical: For Investors in United American Healthcare, This HMO's Vital Signs Are Weak


Oestricher, Dwight, Black Enterprise


Did someone call for life support? Shareholders of United American Healthcare couldn't be blamed for dialing 911 late in September the minute management announced, for the second year running, that charges would drag 1997 results down to a 53-cents-a-share loss, following 1996's 42-cents-a-share deficit. And with company management and major institutional holders selling shares by the bushel, it seemed that the Detroit-based HMO provider's vital signs were fading.

It's almost understating things to say United American has run into a bad streak. Health maintenance organizations--HMOs to you and me--have spent the last couple of years expanding customer base to increase profits. One way they've grown is through acquisitions. Another strategy to increase customer rolls involves taking Medicaid recipients off a state's hands as a first step toward a commercial license. Once state officials have seen the kind of job the HMO does with Medicaid patients, it's easier to get regulators to grant them a commercial license--and entree into a bigger and more lucrative market.

The company's management has gone down the same path, too, but with disastrous results. Last Year. it took a majority stake in Omnicare, a Tennessee HMO that marketed healthcare service for Medicaid recipients. The state, however, wasn't too impressed with United American's pleas to expand outside of Medicaid, and denied the company a license to sign commercial clients to its roster. Dr. Julius Combs, United American's chairman and chief executive officer, says bankrolling lawyers fees in order to put up a fight in Tennessee helped sap company profits last year.

In Michigan and Florida, where the company operates HMOs, regulators have cut premiums an average of 15% and 10%, respectively, for Medicaid beneficiaries, further eating into United American's bottom line. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Patient Listed as Critical: For Investors in United American Healthcare, This HMO's Vital Signs Are Weak
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.