Physician participation in fee-for-service Medicaid programs has been declining nationally since the mid-1970s. Numerous studies have documented the reasons for this decline, including poor reimbursement, payment delays, and administrative burdens. Most are now incorporating managed care into their Medicaid programs as an approach to reduce costs. Arizona has the only statewide, mandatory managed care Medicaid program, the Arizona Health Care Cost Containment System (AHCCCS). This study examines Arizona physicians’ perceptions of both AHCCCS and commercial managed care plans. If physicians’ perceptions of commercial and Medicaid managed care plans are similar, as suggested by this study, then recruitment of physicians into Medicaid programs should improve during the coming years in geographic areas that have some managed care penetration.

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