Chapter 6: How Health Care is Organzied - II

The Traditional Structure of Medical Care

Physicians & Hosptials

physicians bring patients to hospitals and the hosptials get to bill for them

Physicans’ Referral Patterns

informal, highly competetive network of physicians for referrals

The Seeds of New Medical Care Structures

Contract Doctors

Fraternal organizations or remote companies

Multispecialty Group Practice

sallaried physicians work together

group collects on a fee-for-service basis (Mayo Clinic)

AMA did not like this idea--wanted physician autonomy

Community Health Centers

preventetive medicine

rural nursing gave way to nurses working in hosptials in the 1960s

neighborhood health centers helped work with the community to prevent hospitalization--came out of favor in the 1980s

Prepaid Group Practice & HMOs

Kaiser and Group Health Cooperative of Puget Sound both offered specific services for pre-payement, both strove to integrate the providers and the hosptials within the insurance system

HMO term made up by the Nixon administration to seperate it from the pre-paid cooperatives

First-Geneartion HMOs: The Kaiser-Permanente Medical Care Program

three interlocking administrative units: Kaiser Foundation Health Plan (financing and enrollment), Kaiser Foundation Hospitals Corporation(owns the hospitals), and the Permenente Medical Group (physician organziation)

physicians salaried, hosptials on a global budget

Second-Generation HMOs: Independent Practice Associations

1954 San Joaquin Foundation for Medical Care--discounted reviewed fee-for-service capitated HMO desigend to compete with Kaiser-Permanente

1973 legitimization of HMOs by Nixon

Will the HMO Era Bring Primary Care-Based Regionalized Medical Care

people like the individual care of fee-for-service


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Copyright 2000 by David Black-Schaffer