Medicaid managed care and provider consolidation

Gabriela S. Wolfson, Jeffrey C. Talbert

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

In the thrust toward constructing economic value, health care provider finns have been consolidating at a marked rate. Medicaid managed care programs have been rapidly emerging with the objectives of containing health care costs and improving services for beneficiaries. However, there are concerns that the trend toward achieving market efficiency through merger is largely incongruent with the economic and health value objectives of Medicaid managed care programs in the states. Discordance among value objectives arises primarily because of inefficient and market concentrating horizontal merger strategies employed by firms and disruptions in quality of care that occur during the transition to integrated health care systems. By promoting vertical integration strategies and filling in the quality gaps created by an active merger environment, Medicaid offices advance state objectives of cost containment and quality while recognizing that providers operate in a complex and competitive environment that necessitates consolidation for organizational survival.

Original languageEnglish
Pages (from-to)274-305
Number of pages32
JournalJournal of Health and Human Services Administration
Volume23
Issue number3
StatePublished - 2000

ASJC Scopus subject areas

  • Leadership and Management
  • Health Policy
  • Public Health, Environmental and Occupational Health

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