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January 07, 1981 - Image 8

Resource type:
The Michigan Daily, 1981-01-07

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Page 8-Wednesday, January 7, 1981-The Michigan Daily

Blues hope to aid in



Blue Cross and Blue Shield of
Michigan wants to "be a part of" any
Healty Maintenance Organization
(HMO) that develops in the Washtenaw
County area, a representative of that

company told the University Regents at
their meeting last month.
The Regents heard a progress report
and comments from the Blue Cross
spokesman and an independent resear-
cher on the viability of a University-
sponsored HMO at their meeting Dec.

19. The Regents reached no conclusions
on the future of the HMO plan, and the
University probably will continue
researching the question until next
An HMO is a pre-paid health care
plan which emphasizes group practice
and preventative medicine. The
proposed University HMO would serve
both the faculty and the communities of
Washtenaw and western Wayne coun-
"THE ROAD TO HELL is paved with

good intentions and so too the road to
bankruptcy for HMO's," Thomas
Bullen, a Blue Cross vice president. told
the Regents. Noting that of 200 HMO
plans nationwide, 40 are in financial
trouble, Bullen added, "Financial risk
is at the core of the HMO'."
University Medical School professors
have expressed concern about the
teaching opportunities of an HMO.
Bullen said, "There is no room what-
soever for teaching, for experimen-
tation, or for anything that you would

not otherwise find in the community
practice setting which drives the fee-
for-service system."
Expressing Blue Cross's intentions
for local HMO involvement, Bullen
said, "We intend to either acquire or
start HMOs in all the major cities in the
metropolitan areas of Michigan...If in-
deed there is a market for HMOs in
Washtenaw County we would hope to be
a part of it."
The Regents also approved a
resolution at the December meeting
commending outgoing Regent David

Laro (R-Flint) for his services to the
Gov. William Milliken appointed
Laro to fill the unexpired term of
Lawrence Lindemer (R-Stockbridge),
who left the Board to take a seat on the
state Supreme Court in 1975. Laro lost
in a close election to Regent Deane
Baker (R-Ann Arbor) and Nellie Var-
ner (D-Detroit).
Varner will take her seat on the
Board at the January meeting of the

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