OPEN MINDS, The Behavioral Health & Social Service Industry Analyst
Despite rapid enrollment growth, HMO profitability declined during the period from 1994 to 1997, according to a "lnterStudy HMO Trend Report" released by InterStudy Publications of Minneapolis. Close to 90% of HMOs were profitable in 1994, with an average margin of 2.4% compared with the third quarter of 1997, when only 49% of industry plans were found to be profitable, with an average margin of I .2%.
Declining profits could be attributed in part to aggressive . . .