A new InterStudy Publications report, The InterStudy Competitive Edge Regional Market Analysis, finds that total HMO enrollment is decreasing in metropolitan areas. According to the report, there was a 5.6% enrollee decline in metro areas from January 1, 2001 to January 1, 2002.

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"The drop in total HMO enrollment between January 2001 and January 2002 led us to expect enrollment decreases in metropolitan areas during the same period. In fact, enrollment in metro areas declined by over four million enrollees," said Tammy Lauer, Research Director for InterStudy Publications. "Though enrollment in metro areas declined, HMOs experienced slightly better financial performance. The financial analysis we conducted at the metro level shows that, on average, both medical and administrative expenses declined slightly while operating profit margins increased slightly."

The Regional Market Analysis contains data on 326 MSAs with HMO enrollment as of January 1, 2002. For each MSA, the report provides detailed information on HMO enrollment, market penetration, revenue and expenses. The report also provides benchmarks of HMO activity that can be used to compare MSAs nationwide. Most of the data in the report is based on The National HMO Census collected by InterStudy.

InterStudy Publications, a firm specializing in research and reports for market driven health care, publishes the InterStudy Competitive Edge series semi-annually. The Regional Market Analysis is the third report of this three- part series on HMOs. Part I, The HMO Directory, contains a geographic listing of all full-service HMOs operating nationwide. Part II, The HMO Industry Report, gives national and state level information on enrollment trends broken out by product types.

About InterStudy Publications

InterStudy Publications, a division of Decision Resources, offers data, directories, and analyses of the ever-evolving managed care industry. InterStudy tracks changes and trends in HMO and PPO services, enrollment, and profitability. Visit InterStudy Publications at www.interstudypublications.com.

About Decision Resources

Decision Resources, Inc. is a world leader in research publications, advisory services, and consulting designed to help clients shape strategy, allocate resources, and master their chosen markets. The Company has provided strategic information services for 30 years, assessing international pharmaceutical and health care industry trends. Visit Decision Resources at www.dresources.com.

  For more information, contact:    Meg Schmidt                             Elizabeth Marshall    InterStudy Publications                 Decision Resources    1-800-844-3351                          781-296-2563    mschmidt@interstudypublications.com     emarshall@dresources.com 

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SOURCE: Decision Resources

CONTACT: Meg Schmidt of InterStudy Publications, 1-800-844-3351,
mschmidt@interstudypublications.com; or Elizabeth Marshall of Decision
Resources, +1-781-296-2563, emarshall@dresources.com

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