PubMed · 10107130
It is naive to claim that competition leads to efficiency, warns Donald Light. In the second of five articles, he describes how sellers have manipulated the US healthcare market.
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D Light. 1990-10-11. Bending the rules.. https://pubmed.ncbi.nlm.nih.gov/10107130/
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After hospitals and practice management companies spent the better part of this decade snapping up primary-care doctors, they suddenly remembered the specialists. You know, those guys in white coats who generate much of the revenues.
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In recent years, most health care markets in the United States (US) have experienced rapid penetration by health maintenance organizations (HMOs) and preferred provider organizations (PPOs). During this same period, the US has also experienced slowing health care costs. Using a national database, we demonstrate that HMOs and PPOs have significantly restrained cost growth among hospitals located in competitive hospital markets, but not so in the case of hospitals located in relatively concentrated markets. In relative terms, we estimate that HMOs have contained cost growth more effectively than PPOs.