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June 15, 1978New England Journal of Medicine301 citations

Cost Savings Achieved by Health-Maintenance Organizations

How Do Health-Maintenance Organizations Achieve Their “Savings”?

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Authors

HLHarold S. Luft

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Overview

Randomized trial examines cost savings in health-maintenance organizations, suggesting substantial financial benefits.

Key Points

  • The aim is to evaluate how health-maintenance organizations achieve cost savings compared to traditional health insurance models.
  • Comparative analysis of enrollees in health-maintenance organizations versus conventionally insured groups.
  • Assessment of total costs, including premiums and out-of-pocket expenses.
  • Evaluation of hospitalization and ambulatory visit rates.
  • Enrollees in health-maintenance organizations incur costs 10 to 40 percent lower than those with conventional insurance.
  • Hospitalization rates are about 30 percent lower in health-maintenance organizations compared to conventional insurance.
  • No significant difference in average length of stay; lower admission rates across all categories contribute to cost savings.
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Cite This Study

Harold S. Luft (1978) studied this question.

synapsesocial.com/papers/6a0ff6dcd13714ec96fee92bhttps://doi.org/10.1056/nejm197806152982404
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