TY  - JOUR
AU  - Baker,Laurence C.
AU  - Brown,Martin L.
TI  - The Effect of Managed Care on Health Care Providers
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5987
PY  - 1997
Y2  - April 1997
UR  - http://www.nber.org/papers/w5987
L1  - http://www.nber.org/papers/w5987.pdf
N1  - Author contact info:
Laurence C. Baker
Department of Health Research & Policy
HRP Redwood Bldg, Rm T110
Stanford University
Stanford, CA 94305-5405
Tel: 650/723-4098
Fax: 650/725-6951
E-Mail: laurence.baker@stanford.edu
AB  - We investigate the effect of managed care on the health care system, focusing on the effects managed care could have on the number and types of health care providers and their efficiency. By influencing providers, managed care may change the structure and performance of the entire health care system in ways that influence care provided to all patients.  We begin by discussing the mechanisms by which managed care influences health care providers, concentrating on shifts in market demand and increases in the amount of attention paid to price in provider choices.  We develop a theoretical framework that illustrates these effects. We then empirically examine the relationship between managed care activity and mammography providers.  We find evidence that increases in HMO activity are associated with changes in the number of providers, the volume of services produced by each provider, and the prices they charge.  This evidence is consistent with the view that HMOs can have broad effects on health care providers.
ER  -