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| 2 |
Promotion
of HMO’s in the mid 1970’s
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· |
HMO’s
are believed by many to promote a more efficient form of
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practicing
medicine
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· |
Evidence
is overwhelming that HMO’s achieve savings by realizing
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lower
rates of hospitalization among their patients than would otherwise
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be
expected. State governments have
contributed to efforts to introduce
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reforms
into the system by permitting the creation of preferred provider
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organizations
(PPO) these schemes constrain costs by ensuring
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consumers
to seek care from the least costly providers and hospitals in
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their
communities
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| 2 |
In
spite of all the policies enacted in recent years, health care costs
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increase
every year
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· |
In
1989 total health expenditures jumped to 10.4%
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– |
Health
spending over 15% of federal budget
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Medicaid
expenditures represent as much as 20% of state budgets
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