title: Market power and contract form: evidence from physician group practices.
abstract: We examine how the market power of physician groups affects the form of their contracts with health insurers. We develop a simple model of physician contracting based on 'behavioral economics' and test it with data from two sources: a survey of physician group practices in Minnesota; and the physician component of the Community Tracking Survey. In both data sets we find that increases in groups' market power are associated with proportionately more fee-for-service revenue and less revenue from capitation.
authors.affiliation: Division of Health Policy and Management, School of Public Health, University of Minnesota, 420 Delaware St., S.E., Mayo Mail Code 729, Minneapolis, MN 55455, USA. rjtown@umn.edu
authors.forename: Robert
authors.initials: R
authors.lastname: Town
authors.forename: Roger
authors.initials: R
authors.lastname: Feldman
authors.forename: John
authors.initials: J
authors.lastname: Kralewski
mesh_terms: D054598:Blue Cross Blue Shield Insurance Plans / Q000191:economics* / Q000458:organization & administration; D002204:Capitation Fee / Q000706:statistics & numerical data; D032982:Contracts / Q000191:economics / Q000592:standards; D004465:Economic Competition; D018588:Fee-for-Service Plans / Q000191:economics* / Q000706:statistics & numerical data; D006123:Group Practice / Q000191:economics* / Q000458:organization & administration / Q000706:statistics & numerical data; D019538:Health Care Surveys; D006801:Humans; D008329:Managed Care Programs / Q000191:economics* / Q000458:organization & administration; D008389:Marketing of Health Services / Q000191:economics / Q000458:organization & administration; D008910:Minnesota; D018803:Models, Economic; D012044:Regression Analysis