Corporate involvement in medical costs containment

Abstract

This is a discussion of the cost-saving measures designed by American corporations to reduce expenditures on employees' health care. These measures include utilization review, cost sharing, alternative delivery systems, outpatient treatment, self-insurance, preventive care programs, and business coalitions. The author concludes that although some cost-containment measures lower corporate expenditures on health, they may be detrimental to the quality of care. At the same time, measures that have clearly beneficial effects on both quality and cost-efficiency are not fully utilized. The study is based on an analysis of available literature on the subject.