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Has Managed Care Affected the Availability of Medical Technology?

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The consensus among health care researchers is that managed care has played a key role in slowing the surging cost of health care. However, one of the most powerful factors driving the long-term growth of health care expenditures is technology diffusion—the development and use of medical technology. If managed care organizations cannot effectively control the long-term diffusion of technology, it is unlikely that they will be able to continue to curtail rising costs. This study examines the relationships between managed care and technology diffusion over a ten-year period in 261 metropolitan areas throughout the United States.