Article1998

Managed Care And Technology Diffusion: The Case Of MRI

134 citations0/0 files storedHealth Affairs

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Healthcare Policy and Management Health Systems, Economic Evaluations, Quality of Life Healthcare cost, quality, practices

Abstract

A growing body of evidence suggests that managed care can reduce overall health care costs but provides little insight into how this could happen. One possibility is that managed care influences the adoption of new medical technologies. In examining the relationship between health maintenance organization (HMO) activity and market-level availability and use of magnetic resonance imaging (MRI), we find that high HMO market share is associated with low levels of MRI availability and use. This suggests that managed care may be able to reduce health care costs by influencing the adoption and use of new medical equipment and technologies.

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References

1992Medical Care Costs: How Much Welfare Loss?1997Does Managed Care Lead To Better Or Worse Quality Of Care?1997The effect of HMOs on fee-for-service health care expenditures: Evidence from Medicare 1993An Iconoclastic View Of Health Cost Containment 1996Decline in Hospital Utilization and Cost Inflation Under Managed Care in California

Cited by

2001HMO penetration, competition, and risk-adjusted hospital mortality.2001Competition in hospital and health insurance markets: a review and research agenda.2011Competition in Health Care Markets11We wish to thank participants at the Handbook of Health Economics meeting in Lisbon, Portugal, Pedro Pita Barros, Rein Halbersman, and Cory Capps for helpful comments and suggestions. Misja Mikkers, Rein Halbersma, and Ramsis Croes of the Netherlands Healthcare Authority graciously provided data on hospital and insurance market structure in the Netherlands. David Emmons kindly provided aggregates of the American Medical Association's calculations of health insurance market structure. Leemore Dafny was kind enough to share her measures of market concentration for the large employer segment of the US health insurance market. All opinions expressed here and any errors are the sole responsibility of the authors. No endorsement or approval by any other individuals or institutions is implied or should be inferred.2018Hospital efficiency and utilization of high-technology medical equipment: A panel data analysis

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