This study analyzes the effects of health maintenance organization (HMOs) o
n the use of health services by the privately, insured, nonelderly populati
on. After controlling for population and location differences, HMOs increas
e physician visits, nonphysician practitioner visits, ann total ambulatory
visits by modest but significant margins girls, while shifting the mix of p
hysician care front specialists to primary care physicians. HMOs also incre
ase use of two preventive services: mammography screening and flu shots. Co
ntrary to expectation, however, the study finds no significant differences
between HMO and non-HMO enrollees in the rise of hospital, surgery, and eme
rgency room services.