Managed care and technology adoption in health care: evidence from magnetic resonance imaging.
This paper empirically examines the relationship between HMO market share and the diffusion of magnetic resonance imaging (MRI) equipment. Across markets, increases in HMO market share are associated with slower diffusion of MRI into hospitals between 1983 and 1993, and with substantially lower overall MRI availability in the mid- and later 1990s. High managed care areas also had markedly lower rates of MRI procedure use. These results suggest that technology adoption in health care can respond to changes in financial and other incentives associated with managed care, which may have implications for health care costs and patient welfare.
Baker
L C
LC
Department of Health Research and Policy, Stanford University and NBER, HRP Redwood Building Room 253, Stanford, CA 94305-5405, USA. laurence.baker@stanford.edu
D002391:Catchment Area, Health; D003625:Data Collection; D004059:Diffusion of Innovation; D006279:Health Maintenance Organizations / Q000191:economics / Q000706:statistics & numerical data*; D006297:Health Services Accessibility / Q000191:economics / Q000706:statistics & numerical data*; D006801:Humans; D007349:Insurance, Health, Reimbursement; D008279:Magnetic Resonance Imaging / Q000191:economics / Q000706:statistics & numerical data*; D016016:Proportional Hazards Models; D011682:Purchasing, Hospital / Q000191:economics / Q000706:statistics & numerical data*; D012044:Regression Analysis; D017062:Small-Area Analysis; D014481:United States