Journal of Health Politics Policy and Law · 2001 · 29 citations · 9 references
Public AffairsHealth PolicyHealth Services AdministrationHealth Care FinancingHealthcare PolicyManaged CareHealth Care CostsHealthcare FinancingHospital EconomicsHospital FinancingManaged Care EconomicsManaged Care FinanceCost Reduction ObjectivesHealth Care Spending PatternsHealthcare Cost ManagementHospital Uncompensated CareManaged Care Organization EconomicsProfit Margin AnalysisUncompensated Care PaymentsUninsured Health Spending
Managed care in general and HMOs in particular have become the vehicle of choice for controlling health care spending in the private sector. By several accounts, managed care has achieved its cost-containment objectives. At the same time, the percentage of Americans without health insurance coverage continues to rise. For-profit and not-for-profit hospitals have traditionally financed care for the uninsured from profits derived from patients with insurance. Thus the relationship between growth in managed care and HMOs, hospital "profits," and care for the uninsured represent an important policy question. Using national data over an eight-year period, we find that a ten-percentage point increase in managed care penetration is associated with a two-percentage point reduction in hospital total profit margin and a 0.6 percentage point decrease in uncompensated care.
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