Journal article
Managed Care and Physician Incentives: The Effects of Competition on the Cost and Quality of Care
The B.E. journal of economic analysis & policy, Vol.5(1), pp.1-30
07/10/2006
DOI: 10.1515/1538-0645.1409
Abstract
We analyze the effect that competition between HMOs has on the cost and quality of medical services. Our key result is that increasing competition enhances consumer utility while also moderating the impact of managed care on quality and costs. Indeed, we find that heightened competition between HMOs can cause an overall increase in care quality and costs. This result derives from an important, but overlooked, feature of the managed care market place. Plans differentiate themselves by the size and depth of their provider network. The resulting competition to attract physicians exerts a moderating effect on the incentive contracts HMOs write with providers.
Details
- Title: Subtitle
- Managed Care and Physician Incentives: The Effects of Competition on the Cost and Quality of Care
- Creators
- David J. Cooper - Case Western Reserve UniversityJames B Rebitzer - Case Western Reserve University
- Resource Type
- Journal article
- Publication Details
- The B.E. journal of economic analysis & policy, Vol.5(1), pp.1-30
- Publisher
- De Gruyter
- DOI
- 10.1515/1538-0645.1409
- ISSN
- 2194-6108
- eISSN
- 1935-1682
- Number of pages
- 32
- Language
- English
- Date published
- 07/10/2006
- Academic Unit
- Economics
- Record Identifier
- 9984420938202771
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