Medicaid programs throughout the United States are moving away from fe
e-for-service medicine and increasingly towards managed care models in
attempts to control rising health care costs. This study examines the
participation of physicians in Arizona's prepaid, managed care Medica
id program, the Arizona Health Care Cost Containment System (AHCCCS).
In particular, it considers the reasons that physicians decide to part
icipate in AHCCCS, and for participants, the possible impact of these
reasons on whether they participate fully or on a limited basis. A mai
l survey was sent to 300 primary care physicians in Arizona, of which
171 completed surveys were returned. Results suggested that physicians
tend to participate because of reimbursement, approval of the 'type'
of medicine that managed care allows them to practice, and their belie
f in Medicaid-type programs. Physician attitudes toward the patients,
while generally negative, do not keep them from participating in Medic
aid. However, the type of patients in AHCCCS is related to physician s
atisfaction with the AHCCCS health plans, as is reimbursement. The stu
dy indicates differences in the reasons for participation between Ariz
ona's physicians and those in fee-for-service Medicaid programs of oth
er states.