Must Manage Costs

My comments in your March 20 story on the benefits and prognosis for HMOs (“Maxicare’s Ills Fuel Debate Over Benefits of HMOs”) have been misconstrued by many of your readers.

In fact, I believe that HMOs do indeed have strong future prospects if they can more effectively manage medical costs, quality, access and service--the challenges everyone in the health-care industry faces in varying degrees.

If HMOs are to meet these challenges, they will require in-depth skills in provider networking and contracting, utilization management, claims settlement and more attention to member service. The record shows that these are challenges that have been successfully met by a number of HMOs.

CHARLES O. SCHETTER

Los Angeles

The writer heads the health-care practice in the Los Angeles office of the consulting firm McKinsey & Co.