Using the results of a 1995 nationally representative survey of physicians,
this paper examines the relationship between exposure to managed care and
resources expended by physicians on administrative and insurance matters. O
ur measures of managed care exposure are the degree to which a physician ex
periences a variety of managed care techniques (i.e., utilization review, c
apitation payment, restricted panels, gatekeepers, discounted fees, compens
ation links to utilization measures, profiling protocols, and salary paymen
t). Physicians report expending, on average, three hours par week on insura
nce-related matters and 4.8 hours pel week on administration. Although mana
ged care techniques affect administrative and insurance-related burdens, th
e direction of that effect varies according to the form that managed care e
xposure takes. With the exception of being salaried, none of our variables
has an economically significant effect on physicians' administrative/insura
nce burdens, even at the outer-most edge of the 95% confidence interval, Ov
erall, our findings contradict the widely held notion that managed care dra
matically raises the administrative and insurance burden of physicians.