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Related Experiment Videos

Physician fees and managed care plans.

Jack Zwanziger1

  • 1Department of Health Policy and Administration, School of Public Health, University of Illinois at Chicago, 60612, USA.

Inquiry : a Journal of Medical Care Organization, Provision and Financing
|October 10, 2002
PubMed
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Managed care organizations (MCOs) aimed to control healthcare costs. This study found that physician supply and managed care penetration effectively reduced physician fees by introducing competition.

Area of Science:

  • Health Economics
  • Healthcare Management
  • Market Competition Analysis

Background:

  • Managed care organizations (MCOs) have sought to curb rising healthcare expenditures, particularly physician fees.
  • Previous research lacked sufficient data to assess MCOs' success in fostering price competition among physicians.
  • The impact of market dynamics on negotiated physician fees remained largely undetermined.

Purpose of the Study:

  • To determine the factors influencing physician fees negotiated by MCOs during 1990-1992.
  • To evaluate the effectiveness of competition in moderating physician fee growth.
  • To analyze the role of physician supply and managed care penetration in fee negotiations.

Main Methods:

  • Utilized a unique, national-level dataset covering the 1990-1992 period.

Related Experiment Videos

  • Employed statistical analysis to identify key determinants of negotiated physician fees.
  • Focused on factors such as physician supply and managed care penetration.

    • Main Results:

    • Physician supply was identified as a significant factor influencing negotiated fees.
    • Managed care penetration demonstrated a strong correlation with reduced physician fees.
    • These factors collectively suggest a competitive dynamic impacting fee structures.

    Conclusions:

    • The introduction of competition, driven by physician supply and managed care penetration, was effective in reducing physician fees.
    • Managed care strategies can successfully leverage market forces to control healthcare cost growth.
    • Findings support the role of competition in moderating physician service costs.