On June 7, 1984, the
New England Journal of Medicine
publishes a Rand Corporation report finding that Group Health Cooperative delivers equal care for much less money. The report publishes the initial results of a federally funded, eight-year comparative study of Group Health and other delivery systems, including fee-for-service delivery systems. Titled "A Controlled Trial of the Effect of a Prepaid Group Practice on the Use of Services," the report finds that the much-lower costs come from a much lower rate of hospitalization. Later findings will confirm that the lower rate of hospitalizations does not reflect lower levels of health status. The report receives front-page news around the country and, ironically, will result in competing pre-paid plans entering into Group Health's market.