"Managing" demand: the wrong paradigm.

Abstract

The "Managing" of demand practiced by managed care organizations has had some success in controlling health care expenditures, but only at great cost in terms of irate consumers, physicians, employers, media, lawyers and legislators. The spate of "HMO Bashing" can be attributed to the use of the wrong paradigm for dealing with consumer, i.e., management. Initiatives intended to avoid, replace and reform demand should use a marketing paradigm, emphasizing the delivering of value to customers. This article provides examples of the wide range of value-adding benefits that well-designed and implemented demand improvement efforts can have for the wide range of customers affected.