HMOs: looking behind the facade to establish true value
Millikan, D.L.; Origer, D.L.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 41(2): 23; 26-29; 32-34
1987
ISSN/ISBN: 0735-0732 PMID: 10280169 Document Number: 293069
Increasingly, healthcare providers are being given the opportunity to acquire an HMO. However, before the provider can make such an investment decision, it must determine if the HMO is worth the asking price. In other words, what is the true value of the HMO? In the model presented here, the potential acquirer of the HMO is led through three steps that require analysis--internal assessment, external assessment, and financial valuation. Together these steps help the potential acquirer determine what the HMO is truly worth.