DEMAND MANAGEMENT - ENABLING PATIENTS TO USE MEDICAL-CARE APPROPRIATELY

A rationale is presented for considering demand management as well as supply management (managed care) in the current debate on health care reform. Demand management is the support of individuals so that they m ay make rational health and medical decisions based on a consideration of benefits and risks. The concept of demand for medical services is examined within a theoretical framework of four components: morbidity, perceived need, patient preference, and nonhealth motives. Two compon ents, perceived need and patient preference, are suggested to offer co nsiderable potential for making utilization more appropriate and reduc ing costs. Current demand services and potential hazards related to th eir continued expansion are discussed.