Toward a 21st Century Health System: The Contributions and Promise of Prepaid Group Practice

Managed care, which stemmed the annual rise in healthcare costs in the United States from a high of around 18% to something closer to 4%, may be losing steam, as those increases are now back into double digits. An alternative, according to the more than 20 contributors to this book, is prepaid group practice (PGP). A PGP is “an integrated entity that includes both a healthcare delivery system (doctors, other clinicians, laboratories, clinics, and hospitals) and an insurance function (financing arrangements, benefit plans, marketing, and customer service systems) ‘under one roof.’” Its main components are professionals from various specialties, a voluntarily enrolled population, comprehensive service, prepayment by people enrolling, and accountability for the …