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Measuring managed care: does it really save money?

P L Grimaldi

    Healthcare Financial Management : Journal of the Healthcare Financial Management Association
    |March 10, 1988
    PubMed
    Summary
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    Evaluating managed care contracts requires statistical methods to estimate cost savings. Key factors include measurement, lags, study duration, utilization, variability, and quality of care impacts.

    Area of Science:

    • Health economics
    • Biostatistics
    • Healthcare management

    Background:

    • Managed care contracts are increasingly standard in healthcare delivery.
    • Accurate evaluation of cost savings from these contracts is essential for providers and insurers.

    Purpose of the Study:

    • To outline statistical methodologies for estimating cost savings in managed care.
    • To identify critical factors influencing the accuracy of cost-saving analyses.

    Main Methods:

    • Utilizing genetic statistical methods for cost-saving estimations.
    • Addressing specific analytical challenges such as measurement methods and claims lags.

    Main Results:

    • Cost savings can be statistically estimated, but require careful consideration of numerous variables.

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  • Factors like study period length and utilization measurement methods significantly affect results.

    • Conclusions:

    • Robust statistical approaches are necessary for reliable managed care contract evaluation.
    • Comprehensive analysis must account for measurement, timing, variability, and quality of care implications.