Abstract
Public interest in moderating the continuing rise in health care expenditures has intensified, owing to the marked acceleration in both expenditures and prices in recent years. It is suggested here that proposals for achieving reduced expenditures or moderation in the rate of increase be appraised in terms of current knowledge. With three types of problem area taken as illustrations, different conclusions seem warranted. It is believed that the time has come to move to curtail the supply of hospital beds, in order to limit use. The current evidence on the effect of prepaid group practice is regarded as insufficiently sturdy to warrant an active policy of promotion. However, specific studies that promise early results are indicated. In the area of provider reimbursement, existing merchanisms are clearly deficient. A good deal of research is needed, as well as possibly experiments in diverse arrangements for payment.