TY  - JOUR
AU  - Dor,Avi
AU  - Koroukian,Siran M.
AU  - Grossman,Michael
TI  - Managed Care Discounting: Evidence from the MarketScan Database
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10437
PY  - 2004
Y2  - April 2004
UR  - http://www.nber.org/papers/w10437
L1  - http://www.nber.org/papers/w10437.pdf
N1  - Author contact info:
Avi Dor
George Washington University
2021 K street NW, Suite 800
Washington,  DC 20037
Tel: 202-530-2368
E-Mail: avidor@gwu.edu

Michael Grossman
Ph.D. Program in Economics
City University of New York Graduate Center
365 Fifth Avenue, 5th Floor
New York, NY  10016-4309
Tel: 212/817-7959
Fax: 212/817-1597
E-Mail: mgrossman@gc.cuny.edu
AB  - 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.
ER  -