Article ID: | iaor1988872 |
Country: | United States |
Volume: | 19 |
Issue: | 2 |
Start Page Number: | 20 |
End Page Number: | 28 |
Publication Date: | Mar 1989 |
Journal: | Interfaces |
Authors: | Alemi Farrokh, Agliato John |
Keywords: | health services |
In return for a 15 percent discount on clinic and a six percent discount on hospitalization charges, a bank considered lowering by 10 percent the copayments of employees who chose to use the discounted health services. Using decision analysis, the authors projected that the arrangement would lead to more frequent clinic visits and hospitalizations; but lower hospitalization charges. The analysis helped a benefit manager negotiate appropriate contract terms, present his recommendation to the board of directors, and eventually to offer a preferred provider to the employees.