Effect of Prepaid Group Practice on Hospital Use

A GENERATION ago students of medical care were certain that the American people were not getting enough hospital care. Today the concern is, that hospital use in this country may be excessive. Whether this marks merely a change in attitudes (la, 2a) or a change in the real conditions of hospital use (3a) is not known. Yet it is surely characteristic of the present that we search for means to limit the use of hospitals, which have become so costly. The question is, have ways been found to reduce hospital use without impairing the public's health? One suggestion frequently encountered is that the low rate of hospital use reported by prepaid group practice plans be extended to more people. Specifically, this paper examines the literature on the subject of prepaid group practice in relation to hospital use, reviews the findings of several studies, and appraises alternative explanations for the apparent differences in hospital use among populations. It will help our understanding to view the matter chronologically.