Hmo Industry Analysis in the Philippines

Definition of Industry

Health has always been the important value for the average Filipino individual. However, economics and the realities of socialized medical care have created a literally unhealthy situation with the inexorable rise in the cost of living. This results in healthcare becoming more expensive because of the increase in doctors' fees, hospital treatment, and medicine. Along with these are the hazards of being refused admission due to lack of funds to pay the deposit. Budgeting of this income for health care invariably becomes insufficient when emergencies arise. Thus, prolonged hospitalization causes distress when the bills start piling up.

To answer the unending rise in the cost of medical services, the concept of a Health Maintenance Organization surfaced with a comprehensive prepaid health care membership program that would cover all the health needs of an individual. The idea was developed and refined in the last few years and different providers have modified the services and programs. The health maintenance became a type of managed care organization that provides a form of health care coverage that is fulfilled through hospitals, doctors, and other providers with which the HMO has a contract.

The growth of the business and the increasing involvement of the private sectors is reflected by the growing number of health maintenance organizations. Current HMO providers include, but not limited to, the following; Blue Cross Healthcare Inc., Caritas Healthshield Inc., Cocolife Health Care, Fortune Medicare, Health Maintenance Inc., Health Plan Philippines Inc, Insular Life Health Care, Intellicare, Maxicare Healthcare Corp., Medical Services Marketing and Development Corporation, Medicard Philippines Inc., Medocare Health Systems Inc., Philhealth Care Inc., Star Healthcare Inc, and ValueCare Health Systems Inc. The above-mentioned companies are members of the Association of Health Maintenance Organization of the Philippines.

Thru the combined...