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Managed care's effect on minority physicians and their patients
1Department of Health Services Policy and Management, Arnold School of Public Health, University of South Carolina, Columbia 29208, USA. kelder@gwm.sc.edu
Insights
Minority physicians face higher rates of managed care contract denials compared to Caucasian physicians. This study highlights disparities in contract access for African-American, Hispanic, and Asian doctors.
Area of Science:
- Health Services Research
- Health Disparities
- Physician Workforce Studies
Background:
- Managed care organizations (MCOs) play a critical role in healthcare delivery.
- Understanding physician contract denial and termination rates is crucial for equitable access to care.
- Previous research has not fully elucidated disparities faced by minority physicians in managed care networks.
Purpose of the Study:
- To compare the rates of managed care contract termination and denial between minority and non-minority physicians.
- To identify physician and patient characteristics associated with higher rates of contract denials and terminations.
- To investigate potential disparities in physician selection by MCOs.
Main Methods:
- Cross-sectional mail survey of 1,215 physicians across various specialties.
- Analysis of contract denial and termination rates, focusing on physicians denied contracts more than three times in two years.
- Examination of patient characteristics for physicians with the highest denial/termination rates in Maryland.
Main Results:
- African-American physicians (6.4%) and Asian physicians (5.8%) had higher rates of multiple contract denials compared to Caucasian physicians (3.3%).
- Hispanic physicians also experienced elevated denial rates (4.4%) compared to Caucasian physicians.
- Observed differences in physician selection by MCOs persisted even after accounting for market competition.
Conclusions:
- Significant disparities exist in managed care contract access for minority physicians.
- MCOs' selection processes may contribute to inequities in physician network participation.
- Further investigation into MCO practices is warranted to ensure fair contract allocation and promote healthcare equity.
Abstract:
Using data from a cross-sectional mail survey that ultimately included 1,215 physicians, the termination and denial rates of minority physicians' managed care contracts across all specialties were compared with nonminority physicians. The study measured termination and denial rates using several variables, including physicians who were denied managed care contracts more than three times in the previous two years. The authors found that 4.4% of the Hispanic physicians, compared with 3.3% of the Caucasian physicians, 6.4% of the African-American physicians, and 5.8% of the Asian physicians, were denied managed care contracts more than three times during this period. The authors also found patient characteristics of those physicians with the highest rates of contract denials and terminations in the state of Maryland, and concluded differences were observed in the selection of physicians by MCOs, even after considering market competition.
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