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Oklahoma City, Oklahoma, Healthcare Market Overview: February 2000

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Management Summary The Oklahoma City healthcare market is characterized by well-established provider organizations and managed care organizations (MCOs). In addition, the state government, which employs as many as one in four local residents and is the region's largest healthcare purchaser, has a stabilizing effect on the healthcare market. The major MCOs steadily gained enrollment during the 1990s, particularly since the introduction of mandatory Medicaid managed care in 1995. Current managed care penetration in the Oklahoma City metropolitan statistical area (MSA; also referred to in this report as the Oklahoma region) is estimated at 53 percent, with 24 percent of the population enrolled in health maintenance organizations (HMOs) and 29 percent enrolled in preferred provider organizations (PPOs) or PPO point of service (POS) products. An additional 19 percent of the population are Medicaid or Medicare recipients not enrolled in HMOs. Ten percent of the population is estimated to be enrolled in indemnity health insurance products. Finally, according to the InterStudy Regional Market Analysis 9.2 report, 18 percent of the population lacks health insurance. Oklahoma City has four integrated delivery systems (IDSs) that together account for 62 percent of hospital beds and 70 percent of total hospital discharges. Integris Health, the region's largest IDS, continues to grow its local presence with the opening of a comprehensive breast center at Integris Baptist Medical Center and with plans to construct a new hospital in Yukon. At the same time, the IDS faces a lawsuit from physicians angry at its withdrawal from a lease agreement with Bethany Hospital. University Health Partners, the region's second-largest IDS, reports that its 1998 agreement withColumbia/HCA Healthcare, the first time that the operations of a public teaching and research hospital have been turned over to a for-profit corporation, has been a success. After facing huge losses in 1997, the...


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