PUP 4931r Lecture Notes - Lecture 15: Independent Practice Association, Health Maintenance Organization, American Medical Association

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Ama organized its members into county and state medical societies. Lay people could no longer deliver medical care. Much of oversight & regulation of medicine done by physicians themselves through county medical societies. Employment of physicians by hospitals and insurance companies frowned upon. Became a major barrier to expansion of hmos (health maintenance. Kaiser foundation steadfastly bucked ama starting in 1938; grew after wwii. But hmo growth retarded for 50 years by ama. Congress also legislated employers to offer hmo through ipas (independent practice associations) if they offered health insurance. Managed care(cid:1680)mechanism of providing health care services in which a single organization takes on the management of financing, insurance, delivery, and payment. Through at least the 1970s insurance industry did next to nothing to control costs. Really didn t get serious till 1990s with the clinton plan and burst of growth in hmos/ managed care. Then quickly rolled back control efforts following backlash by patients.

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