PPRC Releases Study on Managed Care Physician Payment Plans

WASHINGTON--The Physician Payment Review Commission (PPRC) releaseda study describing how managed care plans select and pay physiciansin their networks. The study, conducted by Mathematica PolicyResearch and the Medical College of Virginia, is the first systematicattempt to compare forms of managed care.

The survey of 108 HMOs and PPOs with a total patient enrollmentof 33 million people found that managed care has significantlychanged the way physicians practice. The future will bring morechanges, including less independence and less flexibility in practiceparameters. At the same time, however, the study revealed thatmanaged care plans create clinically cohesive organizations thatuse information to improve quality of care.