The chronic care model versus disease management programs: a transaction cost analysis approach

Area of Science:

• Health economics
• Healthcare management
• Public health

Background:

• Chronic illness management is a significant challenge for healthcare systems.
• Health plans face complex decisions regarding resource allocation for chronic care.
• Existing approaches include disease management programs and internal care redesign.

Purpose of the Study:

• To analyze health plan decisions using transaction cost economics.
• To compare the adoption of disease management programs versus care redesign.
• To understand the economic factors influencing strategic choices in chronic care.

Main Methods:

• Application of transaction cost analysis framework.
• Qualitative analysis of health plan decision-making processes.
• Comparative study of two chronic illness management strategies.

Main Results:

• Transaction costs influence the choice between external disease management programs and internal care redesign.
• Factors such as contract complexity and asset specificity impact the preferred strategy.
• Understanding these costs is crucial for efficient chronic care delivery.

Conclusions:

• Transaction cost economics provides a valuable lens for understanding health plan strategies.
• Optimizing chronic illness management requires careful consideration of the costs associated with different approaches.
• Policy and management decisions should account for these economic principles.