The management of upstream and downstream risk through selective contracting.
Common strategies employed by many organizations include designating certain suppliers as primary sources and targeting certain customers who are appealing competitively. Such selective strategies are appearing more frequently in the health care sector today. This paper examines the use of selective contracting by managed care programs to simultaneously increase control over costs (provider selection) and decrease risk (subscriber selection).
Scammon
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DL
College of Business, University of Utah, Salt Lake City 84112.
Fuller
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DA
D003284:Contract Services / Q000191:economics / Q000458:organization & administration*; D003363:Cost Control / Q000379:methods; D015273:Insurance Selection Bias; D008329:Managed Care Programs / Q000191:economics / Q000458:organization & administration*; D017146:Models, Organizational; D010934:Planning Techniques; D012308:Risk Management / Q000191:economics / Q000379:methods*; D014481:United States