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HMOs and Twin Cities admission rates

B E Dowd

    Health Services Research
    |June 1, 1986
    PubMed

    Insights

    Minneapolis-St. Paul

    Area of Science:

    • Health Services Research
    • Public Health Policy
    • Healthcare Economics

    Background:

    • Hospital admission rates in Minneapolis-St. Paul (Twin Cities) declined significantly between 1977 and 1982.
    • This decline outpaced national trends and comparison metropolitan areas.
    • The role of Health Maintenance Organizations (HMOs) in this trend was investigated.

    Purpose of the Study:

    • To analyze the impact of Twin Cities HMOs on decreasing hospital admission rates.
    • To determine how the "spillover" effect of HMOs on the non-HMO sector influences the overall HMO effect on admission rates.

    Main Methods:

    • Utilized secondary, age-adjusted data for analysis.
    • Estimated the "spillover" effect of HMOs on non-HMO sectors.
    • Calculated upper and lower bounds for the HMOs' impact on admission rates.

    Main Results:

    • The estimated impact of HMOs on total admission rates is highly dependent on the "spillover" effect.
    • Analysis provided a range (upper and lower bounds) for the HMOs' influence on admission rates.

    Conclusions:

    • The "spillover" effect is a critical factor in understanding HMOs' impact on healthcare utilization.
    • Further research may refine the precise quantification of HMO effects on hospital admissions.

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