Does Managed Care Matter? Hospital Utilization in the U.S. Between 1985 and 1993
40 Pages Posted: 17 Dec 1999
Date Written: May 1997
This paper examines the effect of HMO market development on hospital utilization in short term general hospitals in the U.S. between 1985 and 1993. HMO penetration does not explain the majority or even a substantial minority of the variation in hospital utilization. Among seven measures of hospital utilization, the association between inpatient days per capita and variation in HMO penetration is the strongest with 20% of the 9% decrease in inpatient days attributable to HMOs. The association between HMO penetration and other utilization measures is even smaller. The results suggest that change in hospital utilization over the period 1985 to 1993 was attributable more to factors such as technological change than to HMOs.
JEL Classification: I11
Suggested Citation: Suggested Citation