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Related Experiment Videos

Managed care and technology diffusion: the case of MRI

L C Baker1, S K Wheeler

  • 1Department of Health Research and Policy, Stanford University, CA, USA.

Health Affairs (Project Hope)
|October 14, 1998
PubMed
Summary

Managed care may lower healthcare costs by influencing the adoption of new medical technologies. High health maintenance organization (HMO) market share correlates with less use of magnetic resonance imaging (MRI).

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Managed care and technology adoption in health care: evidence from magnetic resonance imaging.

Journal of health economics·2001

Area of Science:

  • Health Economics
  • Medical Technology Assessment
  • Healthcare Management

Background:

  • Managed care is suggested to reduce overall healthcare costs.
  • The mechanisms by which managed care achieves cost reduction are not well understood.
  • Influence on medical technology adoption is a potential pathway for cost savings.

Purpose of the Study:

  • To investigate the relationship between managed care, specifically health maintenance organization (HMO) market share, and the adoption and utilization of magnetic resonance imaging (MRI).
  • To explore whether managed care influences the availability and use of new medical technologies as a cost-containment strategy.

Main Methods:

  • Examined the association between HMO market share and MRI availability at the market level.
  • Analyzed the correlation between HMO market share and MRI utilization rates.

Main Results:

  • A negative relationship was observed: higher HMO market share was associated with lower levels of MRI availability.
  • Conversely, increased HMO market share was linked to decreased MRI use.

Conclusions:

  • Managed care, through mechanisms like influencing technology adoption, may contribute to reducing healthcare expenditures.
  • The findings suggest that managed care organizations can impact healthcare costs by moderating the adoption and use of expensive medical technologies like MRI.

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