HSA 4321 Lecture Notes - Lecture 10: Managed Care, Monopsony, Health Maintenance Organization
Document Summary
Chapter 11- managed care backlash, provider consolidation, and monopsony power. Dranove et al. (2008) study of market concentration and hospital prices. Fang & rizzo (2010) study of managed care influence on physicians: choice costs more. Growth of ppos relative to hmos: consolidation of providers. Federal trade commission (ftc)/department of justice (doj) actions. Haas-wilson & garmon (2011) study of evanston hospital merger. If selective contracting works, then hospital prices should be lower in markets with less hospital concentration. If selective contracting is less effective over time, perhaps due to the backlash, then the hospital concentration price relationship should weaken: dranove et al. (2008) examine ca & fl hospital data in 1990 through 2003. They find that the relationship grew until about 2001 and then declined, suggesting that selective contracting influence has declined: the decline in hmo enrollment subsequently suggests that the ability to selectively contract has declined.
