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This research aims to compare the effectiveness of prepaid group practices and fee-for-service systems in delivering health care.

A Controlled Trial of the Effect of a Prepaid Group Practice on Use of Services

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This research aims to compare the effectiveness of prepaid group practices and fee-for-service systems in delivering health care.
Randomly assigned 1580 individuals to prepaid group practice or fee-for-service care.
Included a control group of 733 prior enrollees of the prepaid group practice.
Analyzed rates of hospital admissions and expenditures for services.
Hospital admissions were 40% lower in the prepaid group compared to fee-for-service (P<0.01).
Expenditure rates were 25% lower in the prepaid groups compared to fee-for-service (P<0.01 for experimental, P<0.05 for control).
Preventive visit rates were higher in prepaid groups, but did not account for reduced hospitalizations.

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Randomized trial reveals lower hospital admissions and expenditures in prepaid group practice compared to fee-for-service care.

Manning et al. (1984) studied this question.

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