A Primer on Managed Competition

Studies | Health

No. 183
Tuesday, April 19, 1994
by John C. Goodman & Gerald L. Musgrave

Managed competition would make no sense unless most health care were delivered in health maintenance organizations (HMOs), employing the techniques of managed care. That is why most proponents of managed competition oppose traditional insurance and fee-for-service medicine. They want physicians to become agents of bureaucracies rather than agents of their patients, and they want medical practice to be determined more by computer-generated mandates than by the physician's best judgment.

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