This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Citation Map Services Email this article to a friend Similar articles in this journal Similar articles in PubMed Alert me to new issues of the journal Add to Saved Citations Download to citation manager Request Permissions Request Reprints Add to My Marked Citations Citing Articles Citing Articles via HighWire Citing Articles via Google Scholar Citing Articles via Scopus Google Scholar Articles by Chernew, M. E. Articles by Fendrick, A. M. Search for Related Content PubMed PubMed Citation Articles by Chernew, M. E. Articles by Fendrick, A. M. Pubmed/NCBI databases Medline Plus Health Information Managed Care Social Bookmarking                         What's this?

Managed Care, Medical Technology, and Health Care Cost Growth: A Review of the Evidence

University of Michigan

Richard A. Hirth

University of Michigan

Seema S. Sonnad

University of Michigan

Rachel Ermann

Alpha Center, Washington, DC

A. Mark Fendrick

University of Michigan

Although managed care plans reduce health care expenditures at any point in time, less is known about whether such plans control health care cost growth. Because use of new medical technology is an important determinant of cost growth, the impact of managed care on utilization of medical technology will largely determine whether managed care can reduce expenditure growth to sustainable levels. This article reviews the literature relating medical technology to cost growth and the literature examining the impact of managed care on either cost growth or on the diffusion of medical technology. Studies that examine plan-level data often reach different conclusions than studies that examine market-level data. The evidence suggests that managed care, as currently practiced, may reduce the rate of cost growth. However, managed care is unlikely to prevent the share of gross domestic product spent on health care from rising unless the cost-increasing nature of new technology changes.

Medical Care Research and Review, Vol. 55, No. 3, 259-288 (1998)
DOI: 10.1177/107755879805500301


CiteULike    Complore    Connotea    Del.icio.us    Digg    Reddit    Technorati    Twitter    What's this?

This article has been cited by other articles:

				M. E. Chernew, L. Sabik, A. Chandra, and J. P. Newhouse Would Having More Primary Care Doctors Cut Health Spending Growth? Health Aff., September 1, 2009; 28(5): 1327 - 1335. [Abstract] [Full Text] [PDF]

				R. G. Frank, H. H. Goldman, and T. G. McGuire Trends In Mental Health Cost Growth: An Expanded Role For Management? Health Aff., May 1, 2009; 28(3): 649 - 659. [Abstract] [Full Text] [PDF]

				E. S. Fisher, J. P. Bynum, and J. S. Skinner Slowing the Growth of Health Care Costs -- Lessons from Regional Variation N. Engl. J. Med., February 26, 2009; 360(9): 849 - 852. [Full Text] [PDF]

				K. Carey and A. Dor Contract management in USA hospitals: service duplication and access within local markets Health Serv Manage Res, August 1, 2008; 21(3): 161 - 167. [Abstract] [Full Text] [PDF]

				T. Bodenheimer High and Rising Health Care Costs. Part 2: Technologic Innovation Ann Intern Med, June 7, 2005; 142(11): 932 - 937. [Abstract] [Full Text] [PDF]

				M. E. Chernew, P. D. Jacobson, T. P. Hofer, K. D. Aaronson, and A. M. Fendrick Barriers To Constraining Health Care Cost Growth Health Aff., November 1, 2004; 23(6): 122 - 128. [Abstract] [Full Text] [PDF]

				E. Meara, C. White, and D. M. Cutler Trends In Medical Spending By Age, 1963-2000 Health Aff., July 1, 2004; 23(4): 176 - 183. [Abstract] [Full Text] [PDF]

				D. M. Kent, A. M. Fendrick, and K. M. Langa New and Dis-Improved: On the Evaluation and Use of Less Effective, Less Expensive Medical Interventions Med Decis Making, June 1, 2004; 24(3): 281 - 286. [Abstract] [PDF]

				A. L. Rosenberg, T. P. Hofer, C. Strachan, C. M. Watts, and R. A. Hayward Accepting Critically Ill Transfer Patients: Adverse Effect on a Referral Center's Outcome and Benchmark Measures Ann Intern Med, June 3, 2003; 138(11): 882 - 890. [Abstract] [Full Text] [PDF]

				E. L. Bloomfield The Impact of Economics on Changing Medical Technology with Reference to Critical Care Medicine in the United States Anesth. Analg., February 1, 2003; 96(2): 418 - 425. [Full Text] [PDF]

				S. A. Glied Health Insurance and Market Failure since Arrow Journal of Health Politics Policy and Law, October 1, 2001; 26(5): 957 - 966. [PDF]

				M. L. Berk and A. C. Monheit The Concentration Of Health Care Expenditures, Revisited Health Aff., March 1, 2001; 20(2): 9 - 18. [Abstract] [Full Text] [PDF]

				A. B. Cohen Hitting the "Target" in Health Care Cost Control Journal of Health Politics Policy and Law, January 1, 1999; 24(4): 697 - 703. [PDF]

				A. B. Cohen Commentary Med Care Res Rev, September 1, 1998; 55(3): 289 - 297. [PDF]