Managed Care Discounting: Evidence from the MarketScan Database / Avi Dor, Siran M. Koroukian, Michael Grossman.

Format:

Book

Author/Creator:

Dor, Avi.

Contributor:

National Bureau of Economic Research.

Koroukian, Siran M.

Grossman, Michael.

Series:

Working Paper Series (National Bureau of Economic Research) no. w10437.

NBER working paper series no. w10437

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Managed Care Discounting

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2004.

Summary:

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.

Notes:

Print version record

April 2004.