Managed Care Profits To Grow 16% In 03: Study
The managed care industry will have another solid year in 2003, with expanding profit margins pushing net income up 16%, according to a forecast by Corporate Research Group, New Rochelle, N.Y.
Premium rates are going up faster than medical expenses, and the use of technology also is helping to boost margins by lowering administrative costs, the firm says.
CRG predicts profit margins will reach 2.4% at all managed care companies this year, up from 2.2% in 2002, and net margins will be higher at publicly traded companies.
Industry revenue will increase 7%, to $213 billion, CRG predicts.
“The managed care industry is on a roll,” says Carl Mercurio, president of CRG. “Industry profit margins should expand through 2005.”