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Contractual Arrangements Between HMOs and Primary Care Physicians

Three-Tiered HMOs and Risk Pools

Bibliographic Data

ID9100786
AuthorsAlan L Hillman (University of Pennsylvania, corresponding author), W Pete Welch (Urban Institute), Mark V Pauly (0000-0003-4957-4825, University of Pennsylvania)
Year1992
Volume30
Issue2
Pages136-148
Publication date1992-02-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueMedical Care (JOURNAL)
Journal identifiersISSN: 0025-7079 • E-ISSN: 1537-1948
PublisherOvid Technologies (Wolters Kluwer Health) (PUBLISHER)
DOI10.1097/00005650-199202000-00005
PMID1736019
OpenAlexW2011897513
LanguageEN
Citations received4
References cited2

Concern about certain contractual arrangements between health maintenance organizations (HMOs) and primary care physicians has led policymakers to consider curbing these arrangements; one law has already been passed. However, these arrangements are complex and their impact is neither obvious nor well understood. This article first presents a conceptual approach to understanding the relationship between HMOs and primary care physicians and discusses how they influence the locus of financial risk and managerial control. It then refines understanding of two critical dimensions (three-tiered HMOs and risk pools) by examining survey responses of 260 HMOs (representing over 50% of total HMO enrollment.) Results of the evaluation led to the conclusion that primary care physicians in three-tiered HMOs are sheltered from some of the financial incentives and contractual arrangements enacted by the HMO and that the reason for using risk pools may be due more to peer group effects or interaction with other incentives, rather than the direct financial implications of the risk pool on individual physicians. These concepts and observations have relevance for other types of health care systems in this country and elsewhere. Policymakers risk enacting misguided policies unless they understand the details of these arrangements

Actuarial science · Business · Economic growth · Economics · Family medicine · Financial risk · Health care · Health maintenance · Incentive · Microeconomics · Political science · Primary care · Public economics · Relevance (law) · Healthcare Policy and Management · Healthcare Systems and Reforms · Law · Medicine · Primary Care and Health Outcomes

  • Quality-Based Payment for Medical Groups and Individual Physicians

    Open Access•James C Robinson, Stephen M Shortell et al.•INQUIRY The Journal of Health…•2009

  • The Effect of Managed Care on Primary Care Services for Women

    Open Access•ELIZABETH A MCGLYNN•Women s Health Issues•1998

  • HMO Financial Arrangements With Rural Physicians

    Open Access•Jon B Christianson, Richard Hamer et al.•The Journal of Rural Health•1997

  • Physician Experiences With, and Ratings of, Managed Care Organizations in Massachusetts

    Thomas V Williams, Alan M Zaslavsky et al.•Medical Care•1999

  • Compensation and Productive Efficiency in Partnerships

    Martin Gaynor, Mark V Pauly•Journal of Political Economy•1990

  • Paying the Doctor

    Mark W Leiserson, William A Glaser•Industrial and Labor Relations…•1970

Unique citing works4
Citations per year0,14
Citation span1997 - 2009 (13)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 4

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