QUICK SEARCH:   [advanced] Author: Keyword(s): Year:  Vol:  Page:
Home | Help | Feedback | Subscriptions | Archive | Search | Table of Contents

This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Citation Map Services Similar articles in this journal Similar articles in ISI Web of Science Similar articles in PubMed Alert me to new issues of the journal Download to citation manager Citing Articles Citing Articles via HighWire Citing Articles via ISI Web of Science (14) Citing Articles via Google Scholar Google Scholar Articles by Maxwell, J. Articles by Temin, P. Search for Related Content PubMed PubMed Citation

Managed Competition versus Industrial Purchasing of Health Care among the Fortune 500

Peter Temin
Massachusetts Institute of Technology

Abstract.

The theory of managed competition has found favor with many health policy analysts and academic economists alike. Three characteristics—consumer choice, defined contribution, and dissemination of information—signal managed competition strategy. By requiring private employers to provide their employees with a choice of health carriers, a fixed-dollar strategy (defined contribution), and quality information to make appropriate choices among carriers, managed competition offers to remedy imperfections in both the consumer and provider sides of the market for health insurance. In an extensive survey of health care purchasing practices among Fortune 500 companies we found that major companies are not using the managed competition approach to health care purchasing. Instead, most of the companies surveyed are purchasing health care in the same way as they do other inputs to production—a pattern we call industrial purchasing.

This article has been cited by other articles:

				M. B. Rosenthal, B. E. Landon, S.-L. T. Normand, R. G. Frank, T. S. Ahmad, and A. M. Epstein Employers' Use of Value-Based Purchasing Strategies JAMA, November 21, 2007; 298(19): 2281 - 2288. [Abstract] [Full Text] [PDF]

				V. R. Fuchs and E. J. Emanuel Health Care Reform: Why? What? When? Health Aff., November 1, 2005; 24(6): 1399 - 1414. [Abstract] [Full Text] [PDF]

				R. E. Herzlinger and R. Parsa-Parsi Holes in the Swiss Health Care System--Reply JAMA, May 18, 2005; 293(19): 2339 - 2340. [Full Text] [PDF]

				A. C. Enthoven and B. Talbott Stanford University's Experience With Managed Competition Health Aff., November 1, 2004; 23(6): 136 - 140. [Abstract] [Full Text] [PDF]

				A. C. Enthoven Market Forces And Efficient Health Care Systems Health Aff., March 1, 2004; 23(2): 25 - 27. [Abstract] [Full Text] [PDF]

				C. J. Martin Employers: Passive Purchasers or Provocateurs? Journal of Health Politics Policy and Law, April 1, 2003; 28(2-3): 317 - 340. [Abstract] [PDF]

				J. C. Robinson The Politics of Managed Competition: Public Abuse of the Private Interest Journal of Health Politics Policy and Law, April 1, 2003; 28(2-3): 341 - 354. [Abstract] [PDF]

				L. Casalino, R. R. Gillies, S. M. Shortell, J. A. Schmittdiel, T. Bodenheimer, J. C. Robinson, T. Rundall, N. Oswald, H. Schauffler, and M. C. Wang External Incentives, Information Technology, and Organized Processes to Improve Health Care Quality for Patients With Chronic Diseases JAMA, January 22, 2003; 289(4): 434 - 441. [Abstract] [Full Text] [PDF]