
Many observers accuse MCOs of caring more about cost than quality, and argue for government regulation. The american health care industry has undergone such dizzying transformations since the 1960s that many patients have lost confidence in a system they find too impersonal and ineffectual. Up until the 1970s, patients looked to autonomous physicians for recommendations on procedures and hospitals--a process that relied more on the patient's trust of the physician than on facts, and resulted in skyrocketing medical costs.
Newly emerging mcos have tried to solve the shopping problem by tracking the performance of care providers while obtaining discounts for their clients. Focusing on the doctor-patient relationship, he begins with the era of the independently practicing physician--epitomized by Marcus Welby, the beloved father figure/doctor in the 1960s television show of the same name--who disappeared with the growth of managed care.
It also reflects on how difficult it is for patients to shop for medical care. Is their distrust justified and can confidence be restored? David Dranove, a leading health care economist, tackles these and other key questions in the first major economic and historical investigation of the field. Dranove, however, believes that market forces can eventually achieve quality care and cost control.
The Social Transformation of American Medicine: The Rise of a Sovereign Profession and the Making of a Vast Industry

Updated with a new preface and an epilogue analyzing developments since the early 1980s, this new edition of The Social Transformation of American Medicine is a must-read for anyone concerned about the future of our fraught healthcare system.