A Controlled Trial of the Effect of a Prepaid Group Practice on the Utilization of Medical Services

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Rand Corporation, 1985 - Health insurance - 33 pages
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Does a prepaid group practice deliver less care than the fee-for-service system when both serve comparable populations with comparable benefits? To answer this question, the authors randomly assigned a group of 1580 persons to receive care free of charge either from a fee-for-service physician of their choice (431 persons) or at the Group Health Cooperative (GHC) of Puget Sound (1149 persons). Another 733 persons who shared in the cost of their fee-for-service care, but were otherwise comparable to the first two groups, were studied to observe the effects of cost sharing. The rate of hospital admissions for both groups at GHC was about 40 percent less than in the free-care fee-for-service group (p

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