The Effect of Physician and Corporate Interests on the Formation of Health Maintenance Organizations

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Abstract
Change in professional social organization is in part a consequence of client interests, professional interests, and professional heterogeneity. Professional reorganization, which often manifests itself in organization formation, should be most likely to occur when interests of corporate clients are strong and professional diversity leads some professional groups to expand their jurisdiction by organizing. We examine these arguments with a study of health maintenance organization (HMO) formation. We find that corporate interests, professional interests, and professional demographics affect professional interests, with the larger effects being attributed to corporate interests and professional demographics.

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