Evaluating Florida's Medicaid Provider Services Network Demonstration

States have greater flexibility than in the past to structure Medicaid and the delivery of health care to Medicaid enrollees. Currently Florida has embarked on a reform initiative that will include provider service networks (PSN) among the managed care organizations that may organize and deliver care to Medicaid enrollees. The decision to include the PSN option derived in part from the evaluation research findings from a previous Medicaid demonstration. The purposes of this article are to describe key findings from that prior evaluation and to note linkages to Florida's current Medicaid Reform initiative.

Key Findings:

  • Almost every aspect of the development of the new organizational form (PSN) took longer and was more difficult than anticipated.
  • Prior organizational experience with insurance functions proved to be an asset.
  • Fiscal analyses indicated that the program saved the state of Florida a significant amount of money without sacrificing the quantity of patient care or patient satisfaction. Tracking the precise origin of the savings proved challenging, however.

The authors concluded that the PSN program met its stated objectives by most standards. Based in part on this conclusion, the state chose to extend the use of PSNs within its 2006 Medicaid Reform initiative.