J. Gordon on administrative costs

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Jeoffry Gordon, MD, MPH, responds on administrative costs:

It is important to point out that Professor Donald Light underestimated the actual administrative costs for most of us here in California. Here many insureds are in HMOs and the insurance companies do not contract directly with physicians but through intermediary physician independent practice associations or IPAs. Most IPAs consume 10 to 15 per cent of the money available for its adminstrative functions ( some of which may provide value but all of which are diverted from direct medical care.)