Little is known about physicians' exposure to managed care techniques
that affect clinical practice. In 1995, we conducted a survey of 2,003
U.S. physicians asking them about their share of patients subject to
a variety of managed care techniques. Nationally, 24% of physicians re
ceived some form of capitation payment for their patients. The two mos
t widely used techniques were utilization review (UR) applied to an av
erage of 59% of patients, and discounted fees, applied to an average o
f 38% of patients. Although UR was common, ultimate denial rates of co
verage were very low: at most 3% for the types of care studied. Use of
managed care techniques varied more within states than between states
. Conventional measures of HMO market penetration revealed little abou
t how managed care affects physicians.