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health services research, hospital economics, Medicare HMO



  1. Revere, Lee
  2. Large, John
  3. Langland-Orban, Barbara


Abstract: This research compares the mean severity level, length of stay, and cost of Medicare health maintenance organization (HMO) and Medicare fee-for-service (FFS) inpatients. The results suggest Medicare HMOs have healthier inpatients and shorter lengths of stay, but more costly per-day utilization. These findings are contrary to the assumption that HMOs reduce daily utilization.