News in brief - May 22/29, 2006

Study: More say "no" to managed care - New ambulatory surgery center company formed

Study: More say "no" to managed care

The number of physicians forgoing managed care contracts is on the rise, according to a recent study conducted by the Center for Studying Health System Change.

After a period of stability during the mid-1990's, the proportion of physicians without any managed care contracts rose from 9.2% in 2000-01 to 11.5% in 2004-05. The report, conducted by telephone interviews with more than 6,600 physicians nationwide, also found the rate of ob-gyns who opt out of managed care contracts more than tripled to 11.8% from about 3.5% since 1996-97.

Ann S. O'Malley, MD, a senior researcher at the center and co-author of the study, said physicians often choose not to contract with insurers because of low reimbursement rates and aversion to the growing administrative obstacles, but that the vast majority of physicians continue to contract with managed care plans.

New ambulatory surgery center company formed

A group of health care industry veterans has secured $75 million from a private equity firm to launch a new company to develop, acquire and manage ambulatory surgery centers.

The newly-formed venture, Meridian Surgical Partners, said it has already completed three deals to acquire surgery centers in California and Nebraska and to develop another one in Texas. Nashville, Tenn.-based Meridian said it would partner with physicians and other health care professionals in its efforts to get into the market.

Atlanta-based Arcapita Inc., funded the venture.