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MCIC Press Release

July 10 , 2008

Managed Care Industry Concerned Over Financial Challenges

Contact:  The MCIC
Phone:    732-292-1100

MANASQUAN, NJ -- July 10, 2008: Financial constraints are the biggest challenge facing managed care in 2008, according to a survey by The Executive Report on Managed Care.

In the Managed Care Leadership Survey , over 51% of respondents said both increased cost of medical supplies and reduced reimbursement payment were contributing to their financial difficulties.

“Significant medical cost increases are pricing employers and individuals out of the market,” said one respondent.

“We are expected to improve our quality of care through technology which is very costly while we are reimbursed less,” said one director of a managed care organization.

Respondents listed competitive pricing among healthcare organizations as an important step in reducing costs, in addition to reduced cost of medical equipment and prescription drugs.

Amid challenges of increasingly uninsured patients and reduced consumer populations, employers emphasized the importance of cutting costs in order to improve care.

“One of the goals of any organization,” said one respondent, has to be “lowering the cost of provider care without impacting the quality provided to the patient.”

The survey results and more information on employee participation will be featured in The Executive Report on Managed Care.

For more information on The Executive Report on Managed Care, visit  http://www.healthresourcesonline.com/managed_care/14nl.htm.

Address: The Managed Care Information Center, 1913 Atlantic Ave., Ste. F5, Manasquan, NJ 08736; (732) 292-1100, www.themcic.com.