@techreport{NBERw10437,
 title = "Managed Care Discounting: Evidence from the MarketScan Database",
 author = "Avi Dor and Siran M. Koroukian and Michael Grossman",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "10437",
 year = "2004",
 month = "April",
 URL = "http://www.nber.org/papers/w10437",
 abstract = {The paper examines price discounting by health maintenance organizations and preferred provider organizations in markets for hospital services. Our empirical analysis focuses on transaction prices for angioplasty, which is a relatively common procedure, with well defined 'product' characteristics. After controlling for patient and procedure heterogeneity and market power we find that on average prices for PPOs are 8% lower than fee-for-service plans, followed by point-of-service HMOs who capture a 24% discount. Our results are in general agreement with earlier work that shows that managed care discounts are 'real', after accounting for process of care.},
}