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| Author: | Ma, C.-to. A. McGuire, T. G. |
| Title: | Network Incentives in Managed Health Care |
| Journal: | Journal of Economics & Management Strategy
2002 : SPRING, VOL. 11:1, p. 1-36 |
| Index terms: | NETWORK ANALYSIS NETWORKS INCENTIVES HEALTH MANAGEMENT |
| Language: | eng |
| Abstract: | This paper introduces a theory of network incentives in managed health care. Participation in the plan's network confers an economic benefit on providers; in exchange, the plan expects compliance with its protocols. The network sets a target for the number of outpatient visits in an episode of care. A provider failing to satisfy the target may be penalized by the plan's attempt to direct patients to other providers within its network. There is an equilibrium in which every provider m the network uses the target. The authors test the theory by observing behavior of providers before and after the introduction of managed mental health care in a large, employed population. |
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