The effect of HMO competition on gatekeeping, usual source of care, and evaluations of physician thoroughness

Andrew R Sommers1, Douglas R Wholey

  • 1Center for Outcome and Effectiveness Research, Agency for Healthcare Research and Quality, Rockville, MD, USA. asommers@rti.org

Insights

Health maintenance organization (HMO) competition boosts physician thoroughness for enrollees by increasing usual care sources. For non-enrollees, competition effects on usual care sources offset, yielding no net impact on physician thoroughness.

Area of Science:

  • Healthcare Management
  • Health Services Research
  • Health Economics

Background:

  • Health maintenance organizations (HMOs) influence healthcare delivery and patient experiences.
  • Understanding the impact of market competition within HMOs on patient care quality is crucial.
  • Gatekeeping and having a usual source of care are key factors mediating patient perceptions of physician thoroughness.

Purpose of the Study:

  • To analyze how HMO enrollment and competition affect physician thoroughness evaluations.
  • To investigate the mediating roles of gatekeeping and usual source of care.
  • To determine if HMO competition benefits extend to non-enrollees and if effects differ by enrollment status.

Main Methods:

  • Retrospective econometric analysis of nationally representative Community Tracking Study data (1996-1997).
  • Regression analyses (ordered logistic, logistic, multivariate) examined relationships between HMO enrollment, competition, gatekeeping, usual source of care, and physician thoroughness.
  • Sample comprised 27,441 adults.

Main Results:

  • HMO competition increased gatekeeping, which in turn increased having a usual source of care for all individuals.
  • For HMO enrollees, competition enhanced having a usual source of care; for non-enrollees, it decreased it.
  • Having a usual source of care improved physician thoroughness evaluations for all. Gatekeeping negatively impacted thoroughness evaluations for HMO enrollees.

Conclusions:

  • HMO competition ultimately enhances physician thoroughness evaluations for HMO enrollees.
  • While HMO competition has spillover effects on non-enrollees, these are counterbalanced, resulting in no net change in physician thoroughness evaluations.
  • The study highlights differential impacts of HMO market dynamics based on enrollment status.
Abstract

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