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Off target.

T Hudson, R Haugh, C Serb

    Hospitals & Health Networks
    |March 6, 1999
    PubMed
    Summary
    This summary is machine-generated.

    Market-based solutions were explored to control escalating healthcare costs, showing initial promise through innovations like Medicare HMOs. However, market discipline ultimately revealed the inherent complexities and contradictions within the healthcare system.

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    Area of Science:

    • Health economics
    • Healthcare management
    • Market dynamics

    Background:

    • The American approach to problem-solving often relies on market forces.
    • Escalating healthcare costs necessitated innovative solutions.
    • Market-based strategies were implemented to address rising healthcare expenditures.

    Purpose of the Study:

    • To examine the effectiveness of market-driven innovations in controlling healthcare costs.
    • To analyze the outcomes of applying market discipline to the healthcare sector.

    Main Methods:

    • Review of market-based healthcare innovations.
    • Analysis of the performance of Medicare HMOs, physician practice management, and risk contracting.
    • Assessment of the impact of market forces on healthcare costs and system complexities.

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    Main Results:

    • Initial success observed with various market innovations.
    • Subsequent setbacks highlighted the intricate nature of healthcare.
    • Market discipline exposed underlying complexities and contradictions.

    Conclusions:

    • Market-based approaches in healthcare face significant challenges due to system complexities.
    • The healthcare market is subject to inherent limitations and contradictions.
    • Effective cost control in healthcare requires addressing systemic issues beyond simple market discipline.