n administrator, make your medical decisions, your doctor is actually acting as a medical director, for the good of their employer. (Peeno 1)Apparently, some of the largest HMOs are also the slowest-paying ones. For example, Oxford Health Plans, an HMO covering New York's metropolitan area owed millions to both participating physicians and hospitals (Terry 44). They blamed the delay on computer glitches and payments which had been advanced to medical practices. However, these excuses were considered lame by the physicians who were owed money in light of the HMO's profits increasing 65 percent at the end of the second quarter of 1996 (Terry 44). According to Dr. Michael Rutigliano, whose private practice was owed $50,000 by Oxford Health Plans, "It's obviously very frustrating -- and it can certainly cause cash-flow problems" (Terry 44). What is really the cause of the delay in HMOs paying physicians? Many believe it is so that the HMOs can draw as much interest on the money as possible in their own account before having to turn it over to the designated physicians (Terry 44). HMOs, of course, vehemently deny this charge and blame the private practices for inaccurate record keeping and unfamiliarity with the HMO policy process, which they maintain is responsible for the payment delay (Terry 44). However, even HMO representatives have admitted that it is probably next toimpossible for private practices to keep up with HMOs evolving policies, which seem to change daily (Terry 44). Again, these losses for physicians mean higher costs for patients as the vicious cycle continues.Are there any winners in the HMO process? Well, maybe this is something you should decide. In 1996 there were 20 for-profit, publicly traded companies which owned HMOs, registered with the Securities and Exchange Commission. The SEC reported that Mr. Wiggins, CEO of Oxford Health Plans (the largest and slowest-paying HMO) was paid $29.1 million in 1996, and ...
