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Really: What Is Managed Care

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Managed Care Organizations (MCOs)

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What Is Managed Care

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Introduction

Managed care has become an increasingly popular strategy for organizing the delivery of health-care services. Despite the regularity with which the term is used, there is no single accepted definition of managed care. Managed care may refer to a diverse array of arrangements, from those in which insurance and service delivery are fully integrated, such as staff and group model health maintenance organizations HMOs ; to those in which insured people are restricted to a defined set of providers, such as independent practice associations IPAs ; to read article in which the choice of providers is unrestricted but insurers provide incentives to use selected providers and monitor What Is Managed Care care provided, such as preferred provider organizations PPOs that conduct utilization review UR of costly services.

The term managed care is also used to What Is Managed Care management tools, such as utilization review or disease management, whether or not these tools are being used by managed care organizations.

What Is Managed Care

Managed care is often thought of as a U. Since What Is Managed Care early s, however, several countries, including Great Britain, the Netherlands, Germany, Israel, France, and several Latin American countries have formally incorporated elements of managed care into their health systems. What Is Managed Care countries are contemplating such changes. Finally, managed care tools, although primarily associated with the delivery of personal health-care services, draw heavily on public health concepts.

Managed care plans both finance care and attempt to Whzt the health and expenditures of their enrolled populations, unlike conventional insurers, which principally finance the care of individual patients. Managed care plans make use of epidemiology, prevention research, and cost-effectiveness analysis to achieve these population-oriented ends. Managed care plans include a range of distinctive elements. Plans combine and modify these elements over time and across settings. Conventional insurers do not contract with specific healthcare providers. Rather, they reimburse enrollees for care provided by any provider, often based on usual and customary payment rates. Mnaaged contrast, most managed care plans do contract with a network of providers.

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What Is Managed Care of the earliest managed care plans were almost fully vertically integrated organizations, in which a limited number of hospitals and physicians were employees of organizations that took on insurance risk. Most group and Carre model HMOs are not-for-profit. Several HMOs that use staff and group model approaches have recently been established in Switzerland. Germany and the region of Catalonia in Spain are experimenting with physician networks and integrated delivery approaches that follow Mqnaged type of HMO model. Most U. The most common form of this type of managed care is the PPO, in which plans negotiate discounted rates with a What Is Managed Care panel of providers and also permit members to seek care outside the network though at higher coinsurance. Some European countries please click for source considering the implementation of PPOs, but most plan to begin with the introduction of fully integrated delivery systems after experimenting with managed care tools in their traditional health-care systems.

Managed care plans have the opportunity to select the physicians, nonphysician providers, hospitals, and pharmaceuticals included in the plan. In principle, they make this selection by choosing the highest quality and lowest cost providers. There is only limited research examining the characteristics of providers who are selected into plans.

What Is Managed Care

In the United States, participating physicians are more Managsd to be board-certified than the national average; they may also have low-cost practice styles. Because managed care plans contract with providers, they can use a wider range of payment methods than can conventional plans. Plans may pay physician providers using salaries, fee-for-service, and capitation. They may pay hospitals using case rates, such as diagnosis-related groups, or per diem rates.]

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