Article Abstract:
Rep Pete Stark has introduced a House bill requiring no fewer than five physicians for each office location in a group practice, except for practices with only one office. The measure is designed to curtail the operation of sham offices that front physician self-referral operations. However, it also poses a threat to the growth of legitimate group practices. The Medical Group Management Assn estimates that about half of its 5,600 group practices have multiple locations but the average group has only 2.5 physicians per site.
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Article Abstract:
Physicians in Sacramento, CA, have experienced significantly reduced income since 90% of the insured population in the area belong to health maintenance organizations (HMO) and preferred provider organizations (PPO). Physicians and specialists are forced to lower their prices, to see more patients and to compete with other physicians just to maintain the same or less income. About 800,000 Sacramento residents are enrolled in nine HMO's and 388,000 residents are in several PPO's.
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Article Abstract:
Blue Cross of Western New York Inc, in an effort to control rising drug costs, is using a drug formulary for its indemnity and managed care patients. Physicians are urged to prescribe from a list of generic drugs and reasonably priced brand name products. Pres H. John Rubenstein of the Erie County Medical Society agrees that costs must be contained, but presses the need for choice of the most efficacious drug.
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