  
	
  
Health System Change:
The View from Wall Street
Winter 1995 
Health Affairs, vol.14, no.4 (Winter 1995): 159-163 
 Paul B. Ginsburg, Joy M. Grossman 
  group of five health care securities analysts discussed future
    changes in the industry. Their consensus: First, the pace of change is not likely to
    change dramatically, especially the shift to managed care. Second, growth in managed care
    market share will continue at about one to two percentage points per year. Potential
    growth areas for managed care are the small group market, Medicaid and Medicare. Third,
    there will be little vertical integration between health plans and providers. These
    parties will rely on contractual arrangements rather than ownership. Fourth, changes imply
    substantial capital requirements, which will not be a constraint for sound enterprises.
    Fifth, to continue cost containment, providers need to develop new approaches to reduce
    volume and intensity of services.  
 Free access to this article is available at the Health 
  Affairs Web site.  
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