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HKS Authors

See citation below for complete author information.

John D. MacArthur Professor of Health Policy and Management, HKS and HSPH; Professor of Health Care Policy, HMS
Ethel Zimmerman Wiener Professor of Public Policy, HKS; Henry and Allison McCance Professor of Business Administration, HBS

Abstract

The positive correlation in utilization and lack of correlation in spending implies an inverse correlation in prices. This is consistent with evidence that the differences appear to be, at least partially, related to aspects of the market structure. If private markets are to work better to reduce cost, stronger efforts are needed to reduce provider market concentration and promote competitive pricing for healthcare services.

Citation

Chernew, Michael E., Lindsay M. Sabik, Amitabh Chandra, Teresa B. Gibson, and Joseph P. Newhouse. "Geographic Correlation Between Large-Firm Commercial Spending and Medicare Spending." American Journal of Managed Care 16.2 (February 2010): 131-138.