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Health Policy Report
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Volume 338:1635-1639 May 28, 1998 Number 22

Must Good HMOs Go Bad? — The Search for Checks and Balances— Second of Two Parts
Robert Kuttner

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 by Kuttner, R.
-PubMed Citation
Part 1 of this article suggested that without countervailing forces, market pressures to reduce costs in managed care may compel all health maintenance organizations (HMOs) to adopt practices that compromise medical ethics and patient care. Theoretically, there are two types of counterweights: those that rely on market discipline and those external to the market. How effective are they?

Market Discipline: The Discerning Consumer

Advocates of market discipline in health care, such as Alain Enthoven and Regina Herzlinger, propose systems in which consumers discipline health plans and providers by choosing among competing plans.21,22 Ironically, the late Clinton health care proposal, criticized as too bureaucratic, offered consumers . . . [Full Text of this Article]

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Co-editor, The American Prospect, 6 University Rd., Cambridge, MA 02138.

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