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Related Experiment Videos

Overlap in HMO physician networks.

Michael E Chernew1, Walter P Wodchis, Dennis P Scanlon

  • 1University of Michigan School of Public Health, Department of Health Management and Policy, Ann Arbor, USA. mchernew@umich.edu

Health Affairs (Project Hope)
|March 30, 2004
PubMed
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Health maintenance organizations (HMOs) may limit physician networks for cost control, but this affects patient access. Physician network overlap varies significantly, impacting patients switching plans or jobs.

Area of Science:

  • Health Services Research
  • Healthcare Management
  • Health Economics

Background:

  • Health maintenance organizations (HMOs) implement network size restrictions for cost containment and quality improvement.
  • These restrictions can create barriers to patient access to care and hinder transitions between health plans or employment.
  • Understanding physician network overlap is crucial for evaluating patient choice and continuity of care.

Purpose of the Study:

  • To examine the extent, variation, and predictors of physician network overlap within health maintenance organizations (HMOs).
  • To assess the likelihood of patients retaining their physicians when switching between HMOs.
  • To identify characteristics of HMOs associated with greater or lesser physician network overlap.

Main Methods:

Related Experiment Videos

  • Analysis of physician network data across various health maintenance organizations (HMOs).
  • Statistical examination of the degree of overlap in physician participation between different HMO networks.
  • Identification of HMO characteristics (e.g., model type, age, for-profit status, market size) as predictors of network overlap.
  • Main Results:

    • Physician network overlap in HMOs shows considerable variation, with an interquartile range from 34% to 69%.
    • Patients switching HMOs have a moderate likelihood (approximately 50%) of retaining their current physician.
    • Group/staff-model HMOs exhibit minimal overlap, whereas younger, for-profit, and small-market plans demonstrate greater overlap.

    Conclusions:

    • HMO physician network overlap is variable and influenced by plan characteristics, impacting patient continuity of care.
    • The findings suggest that while some patients can maintain their physician when switching plans, significant barriers may still exist.
    • Policy and management strategies should consider network overlap to balance cost-efficiency with patient access and choice.