Potential effects of managed competition in rural areas.
Slifkin, Rebecca T
Date of Pub
Howard, Hilda A; Ricketts 3d, Thomas C
This article assesses the extent to which managed competition could be successful in rural areas. Using 1990 Medicare hospital
patient origin data, over 8 million rural residents were found to live in areas potentially without provider choice. Almost
all of these areas were served by providers who compete for other segments of their market. Restricting use of out-of-State
providers would severely limit opportunities for choice. These findings suggest that most residents of rural States would
receive cost benefits from a managed competition system if purchasing alliances are carefully defined, but consideration should
be given to boundary issues when forming alliances.
Catchment Area (Health)/economics : Consumer Participation : Group Purchasing : Health Care Surveys/methods : Health Services
Accessibility : Hospitals, Rural/utilization : Insurance Pools : Managed Competition/utilization : Medicare/economics/utilization
: Quality of Health Care : Rural Health Services/economics/standards/utilization : Support, U.S. Gov't, P.H.S. : United States