Volume 24, Number 2 (Spring) 1989

Foster, Richard W. 1989. "Identifying Experimental Program Effects with Confounding Price Changes and Selection Bias: The Municipal Health Services."  Journal of Human Resources 24(2):253-279.

The Municipal Health Services Program attempted to improve access to health care while containing costs by establishing primary care centers in undeserved urban areas. The Health Care Financing Administration agreed to waive normal Medicare copayments for services delivered under the program. The establishment of primary care centers was successful in meeting its objectives. The waiver of copayments increased expenditures but not enough to fully offset savings from the reorganization of services.

The author is a professor in the Graduate School of Business Administration at the University of Colorado at Denver. This research was supported by grants from the U.S. Health Care Financing Administration and the Robert Wood Johnson Foundation to the Center for health Administration Studies of the University of Chicago. The author is indebted to the other members of the CHAS project team, and especially to Ronald Andersen, principal investigator, and Gretchen Fleming, study director. He would also like to thank Roger Reynolds, John Abowd, David Hsieh, Jody Sindelar, and the referees..


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