That's not the direction we have gone. Last year, the company ranked 39th. UnitedHealth Group owns eight subsidiaries, including UnitedHealthcare Corp. UnitedHealthcare Corp. in turn owns state and regional healthcare plans across the country, including UnitedHealthcare Corp. of North Carolina, which has about 400,000 members. Of the 27 HMOs operating in the state, about half made a profit last year, according to the state's Department of Insurance. 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.