Blue cross market share, economies of scale, and cost containment efforts

R. Feldman, W. Greenberg

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

Abstract

This paper examines two components of the hospital insurance market structure - market share and the absolute number of enrollees in Blue Cross plans - to ascertain whether market structure affects the willingness of Blue Cross plans to use cost control measures. Empirical estimates show that larger plans are more likely to use prospective reimbursement, pre-admission testing, and concurrent review. Market share, however, has a positive effect only on concurrent review. We suggest that there are economies of scale to cost control efforts, but that high market share generally does not lead to increased cost-consciousness.

Original languageEnglish (US)
Pages (from-to)175-183
Number of pages9
JournalHealth services research
Volume16
Issue number2
StatePublished - 1981

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