

Health System Change:
The View from Wall Street
Winter 1995
Health Affairs, vol.14, no.4 (Winter 1995): 159-163
Paul B. Ginsburg, Joy M. Grossman
group of five health care securities analysts discussed future
changes in the industry. Their consensus: First, the pace of change is not likely to
change dramatically, especially the shift to managed care. Second, growth in managed care
market share will continue at about one to two percentage points per year. Potential
growth areas for managed care are the small group market, Medicaid and Medicare. Third,
there will be little vertical integration between health plans and providers. These
parties will rely on contractual arrangements rather than ownership. Fourth, changes imply
substantial capital requirements, which will not be a constraint for sound enterprises.
Fifth, to continue cost containment, providers need to develop new approaches to reduce
volume and intensity of services.
Free access to this article is available at the Health
Affairs Web site.
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