Managed care and technology diffusion: the case of MRI

A growing body of evidence suggests that managed care can reduce overall health care costs but provides little insight into how this could happen. One possibility is that managed care influences the adoption of new medical technologies. In examining the relationship between health maintenance organi...

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Bibliographic Details
Published in:Health Affairs 1998-09, Vol.17 (5), p.195-207
Main Authors: Baker, L C, Wheeler, S K
Format: Article
Language:English
Subjects:
Adoption of innovations
Availability
Censuses
Cost control
Costs
Diffusion
Diffusion of Innovation
Enrollments
Equipment acquisition planning
Estimates
Fees & charges
Health care
Health care expenditures
Health care industry
Health care policy
Health maintenance organizations
Health Maintenance Organizations - statistics & numerical data
Health Policy
Health Services Accessibility
HMOs
Humans
Influence
Magnetic resonance imaging
Magnetic Resonance Imaging - statistics & numerical data
Managed care
Market shares
Markets
Medical equipment
Medical technology
NMR
Nuclear magnetic resonance
Population
Regression Analysis
Statistical analysis
Studies
Technology
Technology adoption
Technology Transfer
Technology, High-Cost - statistics & numerical data
United States
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Summary:A growing body of evidence suggests that managed care can reduce overall health care costs but provides little insight into how this could happen. One possibility is that managed care influences the adoption of new medical technologies. In examining the relationship between health maintenance organization (HMO) activity and market-level availability and use of magnetic resonance imaging (MRI), we find that high HMO market share is associated with low levels of MRI availability and use. This suggests that managed care may be able to reduce health care costs by influencing the adoption and use of new medical equipment and technologies.
ISSN:0278-2715
1544-5208
DOI:10.1377/hlthaff.17.5.195