Are Factor Substitutions in HMO Industry Operations Cost Saving?
Past research on the potentials for cost-saving scale and scope economies in multiproduct HMO operations in the United States are incomplete in their economics of the underlying technology structure. This article exploits the translog cost model estimates of all past studies of HMO production to inf...
| Publicado en: | Southern Economic Journal Vol. 69; no. 4; pp. 800 - 822 |
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| Formato: | Artículo |
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Southern Economic Association
April 2003
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=510238061&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 510238061 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: April 2003 vid: 69 iid: 4 pid: 1482 pub: Southern Economic Association artinfo: ui: 510238061 10.2307/1061652 ppf: 800 ppct: 22 formats: fmt: @attributes: type: T tig: atl: Are Factor Substitutions in HMO Industry Operations Cost Saving? aug: au: Okunade, Albert A. su: Health maintenance organizations Mathematical models Medical care costs Mathematical models in business Industrial costs sug: subj: Health maintenance organizations Mathematical models Medical care costs Mathematical models in business Industrial costs ab: Past research on the potentials for cost-saving scale and scope economies in multiproduct HMO operations in the United States are incomplete in their economics of the underlying technology structure. This article exploits the translog cost model estimates of all past studies of HMO production to infer the extent to which pairwise factor substitutions (e.g., administrative services vs. medical care resources, e.g., hospital days, physician services) suggest potential for cost savings in groups and independent practice associations. Given the industry's nonhomothetic production over a 20-year period, the conceptually valid Morishima elasticity measure at constant output reveals limited cost-saving potentials from factor interchange and input demands. These opportunities differ for groups and IPAs across Medicare and non-Medicare products. My findings add a timely and significant dimension to understanding potential cost savings in HMO operations. Policy suggestions and cost implications are rationalized in light of the declining Medicare HMO enrollment and recent changes in factor input prices. Reprinted by permission of the publisher. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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