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Hospital selective contracting without consumer choice: What can - usc

Hospital selective contracting without consumer choice: What can - usc 2025

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The document analyzes the impact of selective contracting in California's Medicaid program (Medi-Cal) on hospital competition and pricing. It argues that, despite the absence of consumer choice, evidence does not strongly support the idea that Medi-Cal exerted undue market power over hospitals. Instead, hospital competition is identified as a more significant factor influencing contracting decisions and reimbursement trends. The study examines data from 1981 to 1991, concluding that while Medi-Cal's selective contracting aimed to control costs, it did not lead to significant disruptions in patient care or service cutbacks, particularly emergency room closures.

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