The healthcare industry last year saw a continuation of the market-based reform revolution. Competition and economic forces are squeezing dollars out of the system but at varying rates depending on where you are in the country. Health benefit and hospital cost variations appear to be directly related to managed care penetration. Treatment protocol variations may also be related to economic incentives. The question is, will the variations disappear over the coming years?
What did we discover in our Florida review? We found that south Florida has the highest Medicare cost in the country fueled in part by an abundance of specialists, traditional emphasis on high-end tertiary care, and relatively minimal historic managed care. In retrospect the history of high costs created the high AAPC for this area. But, the high visibility of potential pay-offs hasn't been lost to the roving bands of national HMOs in search of new markets. For many reasons, Florida has become a magnet for out-of-state HMOs, hospital chains and practice management companies. With the influx of new players, the Florida battle zone will soon become a very interesting marketplace, if it isn't already. Maybe Darwin was right. In the evolution of healthcare in Florida it may be the "survival of the fittest."
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