A preliminary feasibility study of the establishment of a health maintenance organization on the Monterey Peninsula

Abstract

The feasibility of establishing a health maintenance organization (HMO) on the Monterey Peninsula is examined. A brief history of the HMO is presented along with principles believed necessary for the HMO's success. Organizational structures of HMOs are reviewed and some of the advantages and disadvantages over conventional methods are discussed. The advantages heavily outweigh the disadvantages. Some of the major legislation, both Federal and State, impacting on HMOs are summarized. The existing health care delivery system on the Peninsula is thoroughly examined to discover what problems exist that might be corrected by the establishment of an HMO. Also the effect of the possible shift of military dependent care to the civilian community is considered. Three possible HMO models are presented for consideration along with suggestions for easing some of the resistance that may evolve.