The Federal Government as Venture Capitalist: How Does It Fare?

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Abstract
The federal government's interest in promoting the development of HMOs is a unique experiment in venture capitalism. Under the beleaguered administration of the Office of Health Maintenance Organizations, the conflicting goals and procedures of government and private business have not been easily reconciled. Within a department (HHS) that tilts to regulatory approaches, OHMO has made some notable progress as an outpost of marketplace solutions to the problems of production, distribution, and financing of health care.

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