Faculty Publications

The Economic Evolution of American Healthcare: From Marcus Welby to Managed Care
by David Dranove

The American health care industry has undergone such dizzying transformations since the 1960's that many patients have lost confidence in a system they find too impersonal and ineffectual. Is their distrust justified and can confidence be restored? David Dranove, a leading health care economist, tackles these and other key questions in the first major economic and historical investigation of the field. Focusing on the doctor-patient relationship, he begins with the era of the independently practicing physician—epitomized by Marcus Welby, the beloved father figure/doctor in the 1960's television show of the same name—who disappeared with the growth of managed care. Dranove guides consumers in understanding the rapid developments of the health care industry and offers timely policy recommendations for reforming managed care as well as advice for patients making health care decisions.

"David Dranove, one of the most skilled research economists working in health care, has written a lively, accessible book tracing the economic and technological forces that have transformed health care from a mom-and-pop operation to big business. In an era when managed care is hard to love, Dranove steps back and assesses how it happened, what it does (and doesn't do), and then offers sensible evidence-based recommendations on where to go from here."

Thomas G. McGuire, Boston University

"At a time when managed care seems to be in the crosshairs, David Dranove has written a balanced and sensible account of its prospects and problems. His book deserves a wide hearing."

Joseph P. Newhouse, Director of the Division of Health Policy Research and Education, Harvard University