Physician participation in managed care increased sharply in the decade between the late 1980s and the late 1990s, but has decreased since then. The proportion of physicians with at least one managed care contract increased from 61% in 1988 to 91% in 1999, but then dropped to 88% in 2001. The average contribution of managed care to physician practice revenue followed a similar pattern, more than doubling from 23% in 1988 to nearly half (49%) of physician revenue in 1999, but then fell to 41% in 2001.

Notes: “Managed care contracts” include contracts with HMOs, PPOs, and IPAs. “Average share of total practice revenue” represents share of revenue among physicians with at least one managed care contract.

Source: Kaiser Family Foundation, Trends and Indicators in the Changing Health Care Marketplace, 2002, May 2002, Exhibit 6.1, p. 64, at http://www.kff.org/insurance/3161-index.cfm (1988 and 1999 data, from Physician Marketplace Statistics 1997/98, and Physician Socioeconomic Statistics, 2000-2002, American Medical Association); and data from the American Medical Association’s 2001 Patient Care Physician Survey (2001 data).