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August 08, 2005 at 08:00 PM
Profit growth at U.S. health maintenance organizations slowed to the low double digits in 2004.[@@]
Total profits for all 515 U.S. HMOs increased to $11.4 billion last year, from $10.3 billion the previous year, but the rate of increase in profits fell to 11%, from 80%, according to Weiss Ratings Inc., Jupiter, Fla.
In recent years, rates for HMOs have increased more rapidly than rates for preferred provider organization plans. Now, increases have slowed, in part because the HMOs that survived the recent industry shakeout are bigger and more stable, Weiss researchers say.
