Dynamic Orange County Health Care Market Responds to Opportunities

Originally published by the Center for Studying Health System Change (HSC) as a Community Report, 2005.

Orange County's Dynamic Health Care Market Responds to Opportunities

HSC researchers visited Orange County, California, as part of the Community Tracking Study and found a dynamic health care market responding to a range of opportunities and competitive pressures. The market was notable for its strong managed care presence, with HMO enrollment remaining robust and physician organizations continuing to manage care under capitated payment arrangements. Orange County's delegated model, where health plans transferred financial risk and care management responsibilities to physician groups, continued to function effectively despite predictions of its demise.

Hospital competition was heating up as systems expanded into each other's traditional service areas, particularly in the affluent southern and coastal parts of the county. Physicians were coming together in larger organizational structures, and interest in hospital-physician alignment was growing. The safety net was adapting to serve a diverse population that included significant numbers of uninsured and underinsured residents, particularly in the county's inland areas, while community leaders looked ahead to potential opportunities under national health reform.

Sources and Further Reading

Center for Studying Health System Change, "Dynamic Orange County Health Care Market Responds to Opportunities," Community Report, Community Tracking Study (2005).