Complaints and Disenrollment at a Health Maintenance Organization

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Abstract
Two options for dissatisfied customers are to voice their grievances or to stop doing business with the offending organization. The choice may be influenced by buyer loyalty. Data for a major Health Maintenance Organization are used to explore the empirical relationship among complaint (voice), disenrollment (exit), and time‐in‐plan (loyalty). Voice and exit are often used together. Compared to non‐complainers, those who register medical complaints are four and one‐half times more likely to leave the plan voluntarily. Time‐in‐plan reduces the likelihood of both voluntary and involuntary disenrollment.