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Medicaid and Managed Care

The Cost-Effectiveness of Arizona's Approach to Mandated Organ Transplantations

University of Missouri, Columbia

For states, the budget burdens precipitated by Medicaid call for innovative measures that result in true economic savings. Nearly all states are engaged in reforming their Medicaid organizations to meet the costs of increased financial responsibility. This article considers the issue of health care reform through one state organization's response to a particular mandate. The case shows how a state Medicaid agency attempted to alleviate the financial burdens of that mandate by extending its philosophy of managed competition through the use of negotiated and competitive managed care contracts for organ transplantations. The agency expected to achieve significant cost savings. The results suggest that managed competition and negotiation hold promise to states as a means for meeting the high costs of technology in the Medicaid environment.

Administration & Society, Vol. 29, No. 1, 42-62 (1997)
DOI: 10.1177/009539979702900103


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