One of those daunting circumstances included the consolidation of physicians groups and hospitals. Consolidation means HMOs have less negotiating power. One of the biggest announcements for the health care provider came late last year, when the HMO announced it was no longer requiring prior authorization for patients wanting medically necessary treatment covered under the plan. The announcement drew much media attention, including notice from President Clinton. The new plan, called Care Coordination, hasn't yet affected the bottom line.
Challenges lie ahead for HMOs.
Possible obstacles include government intervention and lawsuits. It's also possible that startup companies financed by UnitedHealth Capital, the investment arm of UnitedHealth, could eventually come to Greensboro. Regardless, prospects are promising that UnitedHealthcare will bring even more jobs to the Triad over time. Last summer, UnitedHealth transferred its Maryland claims operations to the Greensboro office, which had received high marks for effective claims processing and customer service. It was a good sign, Rollman said.