Year: 2004
Type: report
Abstract: 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.
DOI: 10.3386/w10437
Authors: Avi Dor, Siran Koroukian, Michael Grossman
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2890921644