MASS. BLUES MANAGEMENT IS CRITICIZED IN REPORT

MASS. BLUES MANAGEMENT IS CRITICIZED IN REPORT

Management decision-making by Blue Cross-Blue Shield of Massachusetts, as well as state regulation, will be blamed for the company's ongoing financial woes, according to a published report.

Cresap-Tillinghast will cite inadequate state-set rates and recommend that such products as Medex be kept low by other means, the Boston Globe reported, citing 50 sources familiar with the consultant study. But the ''scathing" report ordered by state Insurance Commissioner Timothy Gailey also is expected to criticize the Blue's outdated computer system and lack of strategic planning.Representatives of both the Blues and Mr. Gailey refused comment on the report, which is due in mid-March. The Massachusetts Blues reported losses in 1986-88 and its reserves now stand some $50 million below what the state requires.

Individual subscribers reportedly are shifting to other carriers as the Blues hike individual rates.