Nursing homes see managed care's effects

Managed care has yet to significantly affect long-term care providers, according to a survey from the American Association of Homes and Services for the Aging, Washington.

But the changes are coming. More than half of respondents to a survey conducted at the association's annual meeting said they expect that managed care will have a significant impact on their organization in the next two years.

"Most of the managed care activity has yet to come," said Bernie Khoo, the association's research director.

More than three-quarters of respondents said they have already undertaken efforts to educate their boards of directors on managed care.

"It is evident from the findings that our members are taking managed care seriously," Khoo said.

First things first

It is also evident from the findings that providers are taking steps toward managed care contracting.

According to the survey, only 40% of respondents have already entered into contracts with health maintenance organizations or other managed care organizations.

But nearly 70% of providers have started to network or form alliances, the precursors to fully capitated managed care contracts.

And another 62% of respondents said they have made organizational changes to meet the challenges of managed care.

Most respondents (54%) said they have prepared for managed care by updating or developing information systems.

"[Long-term care] providers are focusing on making changes to management information systems because they must do that before implementing quality improvement programs," Khoo said. PR