BUSINESSReview urged for United-Oxford dealLess insurer competition in the Northeast likely will further squeeze doctors and employers, analysts say.By Robert Kazel, amednews staff. May 17, 2004. The intention of UnitedHealth Group to acquire Oxford Health Plans Inc. is yet more evidence that the managed care industry is consolidating at a worrisome pace, and that federal regulators must wake up to the danger that doctors and patients will be harmed by unfettered corporate mergers, AMA's president warned. The AMA and others are asking federal regulators to take an aggressive look at Minnetonka, Minn.-based United's proposed acquisition. "All of the warning bells are going off," said Donald J. Palmisano, MD. "They're ringing right now. Let's hope [federal authorities] hear them." United on April 26 said it reached an agreement to buy Trumbull, Conn.-based Oxford for $4.7 billion in stock and cash. The merger would add about 1.5 million Oxford subscribers, most of whom are New Yorkers, to United's existing nationwide customer base of more than 20 million. The deal, scheduled to be completed by the fourth quarter, pending regulatory approvals, "will significantly expand our presence in the northeastern markets," said Robert Sheehy, CEO of the health plan segment of United, in a prepared statement. That's what concerns the leaders of some physician organizations. According to a study of health plan competition by the AMA, the insurance market in the greater New York area -- which includes the New York City metro area and parts of New Jersey, Connecticut and Pennsylvania -- already is considered a "concentrated market" under guidelines established by federal agencies. [...]Full text of American Medical News content is available to AMA members and paid subscribers.
Copyright 2004 American Medical Association. All rights reserved.
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The doctors are in the house
The AMA's House of Delegates is holding its Interim Meeting Nov. 7-10 in Houston, addressing issues such as health system reform and physician payment. Meeting coverage - Slideshow Feature articlesHealth reform review The Massachusetts experience Litigation stress Being sued is personal as well as professional Comprehensive coverage
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