1. There are numerous books on the issues covered in this section. See David Dranove, The Economic Evolution of American Health Care: From Marcus Welby to Managed Care (2000); James C. Robinson, The Corporate Practice of Medicine (1999); Michael Millenson, Demanding Medical Excellence (1999); Sherry Glied, Chronic Condition: Why Health Reform Fails (1997); Charles E. Rosenberg, The Care of Strangers: The Rise of America’s Hospital System (1995); Rosemary Stevens, In Sickness and in Wealth: The Rise of American Hospitals (1990); Joseph A. Califano, Jr., America’s Health Care Revolution: Who Lives? Who Dies? Who Pays? (1986); Paul Starr, The Social Transformation Of American Medicine (1983); Rosemary Stevens, American Medicine and the Public Interest (1976); Herman M. Somers & Anne R. Somers, Doctors, Patients, and Health Insurance (1961). See also Special Issue: Kenneth Arrow and the Changing Economics of Health Care, 26 J. Health, Pol., Pol’y & L. 823–1203 (Issue 5, Oct. 2001); Paul B. Ginsburg, Remarks at the Federal Trade Commission and Department of Justice Hearings on Health Care and Competition Law and Policy (Feb. 26, 2003), at page 58 (noting that “history matters in health care markets”) [hereinafter, citations to transcripts of these Hearings state the speaker’s last name, the date of testimony, and relevant page(s)]. Transcripts of the Hearings are available at http://www.ftc.gov/ogc/healthcarehearings/index.htm#Materials. This chapter does not address a number of important issues, including the rise of medical technology. See generally Council of Economic Advisors, Economic Report of the President, Health Care and Insurance 190–93 (2004); Penny E. Mohr et al., Project Hope Ctr. for Health Affairs, Paying for New Medical Technologies: Lessons for the Medicare Program from Other Large Health Care Purchasers (2003) (submitted to Medicare Payment Advisory Committee), available at http://www.medpac.gov/publications/contractor_reports/Jun03_MedTechPay_PurchSrv(cont)Rpt2.pdf; David M. Cutler & Mark McClellan, Is Technological Change in M edicare Worth It?, 20 HEALTH AFFAIRS 11 (Sept./Oct. 2002); Barbara J. McNeil, Hidden Barriers to Improvement in the Quality of Care, 345 New Eng. J. Med. 1612 (2001); David J. Rothman, Beginnings Count: The Technological Imperative in American Health Care (1997); Salifano, supra; Starr, supra.
2. Gail B. Agrawal & Howard R. Veit, Back to the Future: The Managed Care Revolution, 65 Law & Contemp. Prob. 11, 13 (2003).
3. The principal limitation was that charges had to be “usual, customary and reasonable.” Agrawal & Veit, supra note 2, at 13; General Accounting Office (GAO), Managed Health Care: Effect On Employers’ Costs Difficult To Measure 1 (1993), available at http://archive.gao.gov/t2pbat5/150139.pdf.
4. Robinson, supra note 1, at 22, 24.
5. Tufts Managed Care Institute, A Brief History of Managed Care 2 (1998), at http://www.tmci.org/downloads/BriefHist.pdf (“In the late 1960s and early 1970s, politicians and interest groups of all stripes promoted various proposals for reforming the nation’s healthcare system.... In 1971, the Nixon Administration announced a new national health strategy: the development of health maintenance organizations (HMOs ).... In adopting this policy, the Administration was influenced by Paul Ellwood, MD of Minneapolis, who argued that the structural incentives of traditional fee-for-service medicine had to be reversed in order to achieve positive reform.”).