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Related Experiment Videos

The changing face of managed care.

Debra A Draper1, Robert E Hurley, Cara S Lesser

  • 1Mathematica Policy Research, Washington, DC, USA.

Health Affairs (Project Hope)
|March 20, 2002
PubMed
Summary

Managed care plans are adapting to market pressures by offering more flexible options and provider networks. This strategic shift, however, may lead to increased healthcare costs for consumers and purchasers.

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Area of Science:

  • Healthcare Management
  • Health Economics
  • Market Dynamics

Background:

  • Managed care plans face intensifying marketplace pressures.
  • Growing consumer and purchaser demand for choice and flexibility.
  • Preference for broad, stable provider networks over restrictive ones.

Purpose of the Study:

  • To analyze the strategic shifts in managed care plans.
  • To understand the impact of these shifts on healthcare costs.
  • To examine the evolving relationships between plans, providers, and consumers.

Main Methods:

  • Analysis of managed care plan business strategies.
  • Assessment of market forces influencing plan decisions.
  • Evaluation of changes in product offerings and provider contracting.

Main Results:

  • Plans are offering less restrictive products and more flexible features.
  • Shift towards broader, more inclusive provider networks.
  • Increased emphasis on profitability over market share expansion.

Conclusions:

  • Strategic adaptations by managed care plans may result in escalating healthcare costs.
  • Consumers and purchasers face challenges with rising costs despite increased choice.
  • The healthcare market is undergoing significant transformation driven by competition and demand.

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