Physician Incentives In Managed Care Organizations: Medical Practice Norms and the Quality of Care
This brief considers the interaction between physician incentive systems and product market competition in the delivery of medical services via managed care organizations. At the center of the analysis is the process by which health maintenance organizations (HMOs) assemble physician networks and the role these networks play in the competition for customers. The authors find that although physician practice styles respond to financial incentives, there is little evidence that HMO cost-containment incentives cause a discernable reduction in care quality. They propose a model of the managed care marketplace that solves for both physician incentive contracts and HMO product market strategies in an environment of extreme information asymmetry: physicians perceive the quality of care they offer perfectly and their patients do not perceive it at all.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Altman, Daniel & Cutler, David & Zeckhauser, Richard, 2003.
"Enrollee mix, treatment intensity, and cost in competing indemnity and HMO plans,"
Journal of Health Economics,
Elsevier, vol. 22(1), pages 23-45, January.
- Daniel Altman & David M. Cutler & Richard Zeckhauser, 2000. "Enrollee Mix, Treatment Intensity, and Cost in Competing Indemnity and HMO Plans," NBER Working Papers 7832, National Bureau of Economic Research, Inc.
- Altman, Daniel & Cutler, David & Zeckhauser, Richard J., 2003. "Enrollee Mix, Treatment Intensity, and Cost in Competing Indemnity and HMO Plans," Scholarly Articles 2664300, Harvard University Department of Economics.
- Jonathan Gruber & Robin McKnight, 2002.
"Why Did Employee Health Insurance Contributions Rise?,"
NBER Working Papers
8878, National Bureau of Economic Research, Inc.
- Gruber, Jonathan & McKnight, Robin, 2003. "Why did employee health insurance contributions rise?," Journal of Health Economics, Elsevier, vol. 22(6), pages 1085-1104, November.
- Martin Gaynor & James B Rebitzer & Lowell J Taylor, 2002.
"Incentives in HMO's,"
The Centre for Market and Public Organisation
03/089, Department of Economics, University of Bristol, UK.
- Martin Gaynor & James B. Rebitzer & Lowell J. Taylor, 2001. "Incentives in HMOs," NBER Working Papers 8522, National Bureau of Economic Research, Inc.
- Martin Gaynor & James B. Rebitzer & Lowell J. Taylor, 2001. "Incentives In HMOs," Economics Working Paper Archive wp_340, Levy Economics Institute.
- Martin Gaynor & James Rebitzer & Lowell Taylor, . "Incentives in HMOs," GSIA Working Papers 2003-E21, Carnegie Mellon University, Tepper School of Business.
- Martin Gaynor & James B. Rebitzer & Lowell J. Taylor, 2001. "Incentives In HMOs," Macroeconomics 0111001, EconWPA.
- David J. Cooper & James B. Rebitzer, 2002. "Managed Care, Physician Incentives, and Norms of Medical," Microeconomics 0209001, EconWPA.
- David M. Cutler & Mark McClellan & Joseph P. Newhouse, 2000. "How Does Managed Care Do It?," RAND Journal of Economics, The RAND Corporation, vol. 31(3), pages 526-548, Autumn.
When requesting a correction, please mention this item's handle: RePEc:lev:levppb:ppb_70. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie-Celeste Edwards)
If references are entirely missing, you can add them using this form.