PHP leads local HMOs with $15 million profit. (Physicians Health Plan; health maintenance organizations) (Industry Overview)

Central Ohio's 12 health maintenance organizations posted mixed results in 1991. Several continued in the same financial direction, while others turned around -- for better or for worse.

Performing for the better were Licking Memorial and InHealth, which turned their first profits since starting in 1987 and 1986, respectively. Maturation of the HMOs, good management, higher premiums and cost controls helped them turn the bend, executives said.

Six HMOs reported higher net income than in 1990, with Physicians Health Plan again leading the pack, according to annual statements filed at the Ohio Department of Insurance. Four had lower incomes. Two could not be compared because their results were not separated from those of their parent companies.

At Licking Memorial, cooperation between members and providers helped hold down both administrative and medical costs last year, said Chief Operating Officer Thomas D. Thompson. "The programs we put in place are endorsed by employers employer and physicians," he said.

New last year were reminder notices mailed to members -- "It's time for your mammogram" and the like -- that promoted preventive care and more visits, Thompson said. Premiums were raised 14 percent from 1990 to '91.

Of the eight HMOs that increased net worth, Licking led with a 3,931 percent increase. Net worth is a solvency indicator, closely watched by regulators, that reflects an HMO's financial cushion to pay claims. It consists of stock, paid-in surplus, contributed capital, …