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05/31/94

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ENTHOVEN WINS TOP HEALTH CARE AWARD FOR THEORY OF MANAGED COMPETITION

STANFORD -- Alain C. Enthoven, a pioneer in the economics of health care, will be awarded the 1994 Baxter Health Care Services Research Prize, the highest honor in its field, at the annual meeting of the Association for Univers ity Programs in Health Administration (AUPHA) in San Diego on July 11.

Enthoven is the Marriner S. Eccles Professor of Public and Private Management at the Graduate School of Business, where he has been a member of the faculty since 1973. He has been called the intellectual father of managed compe tition, the theory that appropriately managed competition among health care provider organizations can lead to lower costs and higher-quality care for consumers.

"Dr. Enthoven is one of the most powerful influences on the [current] health care reform debate," said Arthur F. Staubitz, president of the Baxter Foundation, which with AUPHA sponsors the $25,000 prize. "His work clearly is re flected in the national discussion on managed care and access to care. He created a meaningful alternative to traditional health care delivery and provided a focus for the debate."

Enthoven is a former assistant secretary of defense who served under Presidents Kennedy and Johnson. His interest in the health care industry dates back to 1969, when he joined Litton Industries as vice president for economic p lanning and then Litton Medical Products as president. Enthoven first proposed "regulated competition" in a "consumer-choice health plan" in the New England Journal of Medicine in 1978. He coined the term "managed competition" a decade later.

Enthoven was one of 40 nominees for the Baxter award, given annually to "an individual specializing in health services research whose contributions have had a worldwide impact." Besides teaching health care management to studen ts in Stanford's MBA program, Enthoven is a consultant to the Kaiser Foundation Health Plan, among other clients. His principles and advice helped benefits managers negotiate favorable health plan premiums for Stanford University's 10, 000 employees and for the California Public Employees Retirement System (CalPERS). He also has introduced competition to the socialized medical systems of the United Kingdom and Australia and the private health insurance system of the Netherlands.

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