Cost and quality trends in direct contracting arrangements

Published: January 1, 2002
Category: Bibliography > Papers
Authors: Christianson J, Drury P, Lyles A, Shore AD, Solberg LI, Weiner JP
Countries: United States
Language: null
Types: Finance/Budgeting, Performance Analysis
Settings: Academic

Health Aff 21:89-102.

Health Systems Management Faculty, School of Public Affairs, University of Baltimore, Baltimore, MD, USA.

This paper presents the first empirical analysis of a 1997 initiative of the Buyers Health Care Action Group (BHCAG) known as Choice Plus. This initiative entailed direct contracts with provider-controlled delivery systems; annual care system bidding; public reports of consumer satisfaction and quality; uniform benefits; and risk-adjusted payment. After case-mix adjustment, hospital costs decreased, ambulatory care costs rose modestly, and pharmacy costs increased substantially. Process-oriented quality indicators were stable or improved. The BHCAG employer-to-provider direct contracting and consumer choice model appeared to perform reasonably well in containing costs, without measurable adverse effects on quality.

PMID: 11900098

Cost Burden Evaluation,Performance Assessment,Process Measures,United States,Consumer Behavior/economics,Contract Services,Cost Control/methods,Group Purchasing/economics,Health Benefit Plans,Employee/standards,Health Care Coalitions/economics,Minnesota,Organizational Case Studies

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