Does payment drive procedures? Payment for specialty services and procedure rate variations in 3 HMOs.
OBJECTIVE
To study how payment for specialty services affects the rates of performance of invasive procedures by physicians in a number of specialties.


METHODS
Observational study.


METHODS
Administrative data from 1996-1997 and 1997-1998 from 3 large health maintenance organizations (HMOs) in the Midwestern and western United States were used to study variations in procedure rates associated with different methods of paying for cardiology, gastroenterology, ophthalmology, orthopedic, and ear, nose and throat services within each HMO. The age-, sex-, and comorbidity adjusted probabilities of undergoing selected, potentially discretionary procedures, were compared within each plan by payment method.


RESULTS
After adjustment, rates under fee-for-service payment tended to be higher than those under capitation or salary payment, whereas there was no clear pattern for salary versus capitation payment. Even within a single specialty in a single plan, however, rates did not always follow the same pattern for different procedures.


CONCLUSIONS
The payment method for specialty services used by these 3 health plans was variably associated with how likely patients were to undergo a variety of invasive procedures. The effects of contract payment methods for specialty services on health care costs, quality, and outcomes should be further studied, but such studies will challenge the capabilities of health plan data systems.
Saver
Barry G
BG
Department of Family Medicine, University of Washington, Seattle, Wash 98195-4696, USA. saver@u.washington.edu
Ritzwoller
Debra Pearson
DP
Maciosek
Michael
M
Goodman
Michael J
MJ
Conrad
Douglas A
DA
Finkelstein
Eric
E
Haase
Martin
M
Barrett
Paul
P
Cain
Kevin C
KC
D000328:Adult; D019937:Diagnostic Techniques and Procedures / Q000191:economics* / Q000706:statistics & numerical data; D004470:Economics, Medical; D006279:Health Maintenance Organizations / Q000458:organization & administration*; D006302:Health Services Research; D006801:Humans; D008875:Middle Aged; D012051:Reimbursement Mechanisms; D013038:Specialization; D013514:Surgical Procedures, Operative / Q000191:economics* / Q000706:statistics & numerical data; D014481:United States