He wanted to find the driving forces in the growth of the industry and predict where the forces would be as time goes forward. The analysis divided up the evolution into 3 stages. The stage in which managed care companies are trying to find a nice in a market dominated by government insurers. Companies could be successful by simply shadow-pricing government insurers. Managed care companies are marginally computing with managed care companies.
Companies are successful by changing the delivery system left over from the fee-for service model.
Development of managed care industry. Some of the tools that we've been talking about can be applied Basically, in stage one, mainly people are focused on the price of service and the availability of hospital beds. But, as you move across that continuum there are 2 main differences that create focal points. One of the focal points is a new emphasis on directly working with the patient. In this area the focus is on working to improve the system and particularly on improving the perception of the experience of care.