Cutting Costs of Health Care for the Poor in California: A Two-Year Follow-Up
Iglehart, John K.
New England Journal of Medicine. 1984 Sep 13; 311(11): 745-748.
Iglehart's report focuses on the potential consequences to California's health care delivery system of 1982 cost control legislation authorizing both the state and private insurers to negotiate prepaid contracts selectively with hospitals and physicians. The flat, all-inclusive per diem rate paid to hospitals that contract with Medi-Cal (California Medicaid) beneficiaries has created problems for teaching hospitals, which treat more severe illnesses. Some Californians also fear that further efforts to reduce costs, such as the planned capitation of the Medi-Cal system, could result in second-class care for the poor, strain the resources of the public hospitals that treat them, and influence all health care delivery. (KIE abstract)
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