Millions of individuals live in the United States of America, and they all need effective, affordable and accessible health care coverage and services. Within decades, the scope and cost of health care has changed dramatically with increased complexity and significance to the healthcare market. The purpose of this paper is to analyze the managed care industry and examine how organizations try to control costs. Managed Care Organizations is a partnership of health care providers whose purpose is to contract with an institution (Crosson & Tollen 2010). The contracting institution can be an establishment, a coverage group, Medicare, Medicaid, a union, an individual, or any connection of these kinds. In order to assist patients in an exact geographic area, the providers discount their fee in order to have a contract with Managed Care Organizations. By providing this price cut, the patients are more likely to visit their practice or hospital. The cohort of providers can be a health maintenance organization or a preferred provider organization, depending on how restrictive the alliance is as well as how much money they can command for their services in a particular market. Kaiser Permanente, an integrated managed care organization, has a partnership with Managed Care Organizations. Kaiser Permanente was founded in 1945 by physician Sidney Garfield and industrialist Henry J. Kaiser. Managed Care Organizations integrates their financing and delivery medical care with the goal of providing a predetermined budget to a served society. Kaiser Permanente is a United States based, non-profit operating league, focusing on the major health care issues facing the nation. As do all non-profit organizations, as Permanente future look on healthcare (2008-2010) uses excess revenues to reach this goal rather than distribute them as profits or dividends. In today’s world, there are hundreds of thousands of non-profit organizations...
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