The Economic Evolution of American Health Care
From Marcus Welby to Managed Care
By (author) David Dranove
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Economic Evolution of American Health Care by David Dranove
Book DescriptionThe American health care industry has undergone such dizzying transformations since the 1960s that many patients have lost confidence in a system they find too impersonal and ineffectual. Is their distrust justified and can confidence be restored? David Dranove, a leading health care economist, tackles these and other key questions in the first major economic and historical investigation of the field. Focusing on the doctor-patient relationship, he begins with the era of the independently practicing physician--epitomized by Marcus Welby, the beloved father figure/doctor in the 1960s television show of the same name--who disappeared with the growth of managed care. Dranove guides consumers in understanding the rapid developments of the health care industry and offers timely policy recommendations for reforming managed care as well as advice for patients making health care decisions. The book covers everything from start-up troubles with the first managed care organizations to attempts at government regulation to the mergers and quality control issues facing MCOs today. It also reflects on how difficult it is for patients to shop for medical care. Up until the 1970s, patients looked to autonomous physicians for recommendations on procedures and hospitals--a process that relied more on the patient's trust of the physician than on facts, and resulted in skyrocketing medical costs. Newly emerging MCOs have tried to solve the shopping problem by tracking the performance of care providers while obtaining discounts for their clients. Many observers accuse MCOs of caring more about cost than quality, and argue for government regulation. Dranove, however, believes that market forces can eventually achieve quality care and cost control. But first, MCOs must improve their ways of measuring provider performance, medical records must be made more complete and accessible (a task that need not compromise patient confidentiality), and patients must be willing to seek and act on information about the best care available. Dranove argues that patients can regain confidence in the medical system, and even come to trust MCOs, but they will need to rely on both their individual doctors and their own consumer awareness.
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Book DetailsISBN: 9780691102535
(229mm x 152mm x 12mm)
Imprint: Princeton University Press
Publisher: Princeton University Press
Publish Date: 23-Sep-2002
Country of Publication: United States
Books By Author David Dranove
Economics of Strategy, Hardback (August 2012)
Economics of Strategy offers a comprehensive text that provides a link between economic theory and business applications that is at once technical in its approach and accessible due to its numerous examples and clear writing style.
Code Red, Hardback (February 2008)
Proposes a set of healthcare solutions that address access, efficiency, and quality. This book focuses on the plight of the uninsured, and proposes a direction that promises to make premier healthcare for Americans a national reality. It is suitable for those trying to make sense of the thorny issues of healthcare reform.
Kellogg on Strategy, Hardback (August 2005)» View all books by David Dranove
Creating and sustaining a profitable business requires close adherence to the fundamentals of business strategy. Fortunately, the basics of business strategy can be boiled down to three simple principles: Firms must create value for their customers; they must fend off competition; and they must ensure that their strategic position endures.
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Author Biography - David Dranove
David Dranove is the Walter McNerney Distinguished Professor of Health Industry Management and Professor of Management and Strategy at Northwestern University's Kellogg Graduate School of Management. He recently authored "How Hospitals Survived", with William D. White, and is coauthor of "The Economics of Strategy", a popular business strategy textbook.Correction: On pages 114 and 172, the book incorrectly states that Oxford Health Plan went bankrupt due to poor accounting. In fact, Oxford suffered from problematic revenue collection. It staved off bankruptcy and returned to profitability.
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