Health Maintenance Organizations Can Help Control Health Care Costs

Advanced economic analysis was used to study the performance of health maintenance organizations (HMO) qualified to receive Federal assistance under the Health Maintenance Organization Act of 1973. The study was made to determine if these HMO's are performing efficiently in the provision of health care services. Proponents of HMO's contend that they can provide care more efficiently and control overall health care costs by altering the basic incentive structure affecting providers.