Dor, Avi. <br/><br/>
Managed Care Discounting:  Evidence from the MarketScan Database / 
Avi Dor, Siran M. Koroukian, Michael Grossman. 
 - Cambridge, Mass.  National Bureau of Economic Research  2004. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w10437 .
 - Working Paper Series (National Bureau of Economic Research)  no. w10437. .
<br/><br/> April 2004. 
<br/><br/> The paper examines price discounting by health maintenance organizations and preferred provider organizations in markets for hospital services. Our empirical analysis focuses on transaction prices for angioplasty, which is a relatively common procedure, with well defined 'product' characteristics. After controlling for patient and procedure heterogeneity and market power we find that on average prices for PPOs are 8% lower than fee-for-service plans, followed by point-of-service HMOs who capture a 24% discount. Our results are in general agreement with earlier work that shows that managed care discounts are 'real', after accounting for process of care. 
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