These Days, Hmo Stocks Are In The Pink

Florida's first licensed health-maintenance organization (HMO) opened its doors 23 years ago in Miami's Little Havana. Ramsay-HMO Inc., then known as Clinica Asociacion Cubana, served a small group of exiles who were accustomed to clinic medicine. Native Floridians had no reason to go there. They were suspicious of clinics. The whole idea of HMOs--organizations offering health care to members at low costs by keeping expenses under tight control--was not well known or understood. Most people preferred to see their doctors in private offices, on a fee-for-service basis.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.