Managed Care, Consolidation Among Health Care Providers, and Health Care: Evidence from Mammography
Volume: Volume 30, No. 2
Issue: Summer 1999
Pages: pp. 351-374
Authors: Laurence C. Baker and Martin L. Brown
Title: Managed Care, Consolidation Among Health Care Providers, and Health Care: Evidence from Mammography
Abstract: We discuss the effects of managed care on the structure of the health care delivery system, focusing on managed-care-induced consolidation among health care providers. We empirically investigate the relationship between HMO market share and mammography providers. We find evidence of consolidation: increases in HMO activity are associated with reductions in the number of mammography providers and with increases in the number of services produced by remaining providers. We also find that increases in HMO market share are associated with reductions in costs for mammography and with increases in waiting times for appointments, but not with worse health outcomes.
JEL Classification
Analysis of Health Care Markets (I110)
Health: Government Policy Regulation Public Health (I180)
Economics of Health including medical subsidy programs (9130)