California Health Care Market Report

Allan Baumgarten

This annual report of California's health plans, hospital systems, and physician organizations chronicles important trends and changes in the state's health care industry. It documents financial results, enrollment trends, market share, and measures of utilization and effectiveness of care.

March 2007

Based on public research data and numerous interviews with key health care leaders, the 2006 edition of the annual California Health Care Market Report describes significant trends in the largest health care market in the nation. This report, in its fifth edition, found that health care organizations in California faced formidable challenges that cut to the core of how health care and health benefits were organized, financed, and delivered.

Among the major trends and findings outlined in the 2006 report are:

  • The migration away from HMOs continued, putting pressure on physician organizations.
  • Economic power was shifting from hospitals back to health plans.
  • Hospitals spent major funds on new construction.
  • Kaiser Permanente was expanding.
  • Consumer protections were increasingly an issue as new products with greater cost sharing were introduced.
  • Purchasers demanded value, and health plans wanted transparency.
  • Methods for covering the uninsured and the underinsured continued to be a challenge.

The report also examined health care access, the role of safety-net providers, and important initiatives by purchasers, provider systems, and health plans. One section of the analysis focuses on hospital systems and physician organizations in the largest regional submarkets of the state: San Francisco, Sacramento, Central Valley, Los Angeles/Orange Counties, Inland Empire, and San Diego/Imperial Counties.

The full report is available under Document Downloads. In addition, previous years' editions of this report (formerly known as California Managed Care Review) are available.