(A Survey by the Bureau of Medical Economics)No other development in medical economics, with the exceptions perhaps of sickness insurance and state medicine, has incited more interest and discussion than has group hospitalization, or prepayment plans for hospital care.The purchase of hospital service on a group basis has existed in some form or other for many years, but only recently has "group budgeting for hospital expenses" been strongly advocated. The factors that have caused this sudden activity and the forces that are urging the adoption of group payment methods deserve careful study. It is important, moreover, to determine whether or not the plans that are being promoted will really bring about the better medical service which is desired by the medical profession, the hospitals and the public, or whether such arrangements will actually direct hospital service into channels harmful to the progress of medicine, inimical to
ORGANIZATION SECTION of the Journal of the American Medical Association: Devoted to the Organizational, Business, Economic and Social Aspects of Medical Practice. JAMA. 1937;108(26):141B–148B. doi:10.1001/jama.1937.02780260183049
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