Managed care mythology: supply-side dreams die hard.

ABSTRACT

As managed care gains increasing influence over the American health financing system, economic pressures and emerging market realities have created a fertile climate for wishful thinking on the part of hospital executives and physicians. Rather than accept the inevitability of reducing excess capacity and incomes, providers cling to self-serving myths about managed care's strategic direction. Here are five of these myths along with their contrasting market realities.