Does the growth of PPMs spell trouble for HMOs?

The recent explosion of physician practice management companies (PPMs) has prompted some to question if their role of negotiating contracts for physician practices while keeping an eye on costs and quality of medicine means the diminishment of the HMO industry. Not quite, says an article in Managed Care magazine.

Pamela DeSmidt, managing partner of Fairfax, VA-based Decision Support health care research firm, told Managed Care that PPMs' interests so far have been in managing and buying practices, not turning themselves into HMOs.

One of the few exceptions is The Company Doctor in Irving, TX, an occupational medicine practice management company that contracts directly with large employers. But for the most part, the article notes, PPMs are billed as successful managers of contracts and administrative details, leaving medical management to the HMOs.