Abstract:
:Consumer dissatisfaction with the quality and limitations of managed health care led to rapid disenrollment from managed care plans and demands for regulation between 1998 and 2003. Managed care organizations, particularly health maintenance organizations (HMOs), now face quality and coverage mandates that restrict them from using their most aggressive strategies for managing costs. This paper examines the effect of this backlash on managed care's ability to contain costs among short-term, non-federal hospitals between 1998 and 2008. The results show that the impact of increased HMO penetration on inpatient costs reversed over the study period, but HMOs were still effective at containing outpatient costs. These findings have important policy implications for understanding the continuing role that HMOs should play in cost containment policy and for understanding how effective the latest wave of cost containment institutions may perform in heavily regulated markets.
journal_name
Health Econjournal_title
Health economicsauthors
Dugan Jdoi
10.1002/hec.3115subject
Has Abstractpub_date
2015-12-01 00:00:00pages
1604-18issue
12eissn
1057-9230issn
1099-1050journal_volume
24pub_type
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