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Restricting Patients' Choices of Physicians: A Decision Analytic Evaluation of Costs

Author

Listed:
  • Farrokh Alemi

    (Center for Medical Education and Health Care Research, Jefferson Medical College, 1025 Walnut Street, Room 119, Philadelphia, Pennsylvania 19107)

  • John Agliato

    (Tulane Department of Health Systems Management, 1501 Canal Street, New Orleans, Louisiana 70112)

Abstract

In return for a 15 percent discount on clinic and a six percent discount on hospitalization charges, a bank considered lowering by 10 percent the copayments of employees who chose to use the discounted health services. Using decision analysis, we projected that the arrangement would lead to more frequent clinic visits and hospitalizations; but lower hospitalization charges. The analysis helped a benefit manager negotiate appropriate contract terms, present his recommendation to the board of directors, and eventually to offer a preferred provider to the employees.

Suggested Citation

  • Farrokh Alemi & John Agliato, 1989. "Restricting Patients' Choices of Physicians: A Decision Analytic Evaluation of Costs," Interfaces, INFORMS, vol. 19(2), pages 20-28, April.
    • Handle: RePEc:inm:orinte:v:19:y:1989:i:2:p:20-28
    DOI: 10.1287/inte.19.2.20
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