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Managed Care

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Managed care what is it where did I come from? What is the current state of managed care in the U.S. health care system? Why did some speak of the death of managed care? Managed care has evolved over time as a way to control the use of health care services and manage care has been around for a long time. Liebermann (1999) State, “The first recorded health care program in America, which conformed to a managed care model, was started in 1798 by several East Cost shipping companies that developed pre-paid services for maritime workers in their employ.” Managed care is defined as Systems and techniques used to control the use of health care services. Includes a review of medical necessity, incentives to use certain providers, and case management. The body of clinical, financial and organizational activities designed to ensure the provision of appropriate health care services in a cost –efficient manner. Managed care techniques are most often practiced by organizations and professionals that assume risk for a defined population (e.g., health maintenance organizations) but this is not always the case. Managed care is a broad term and encompasses many different types of organizations, payment mechanisms and collaborations. Managed care is sometimes used as a general term for the activity of organizing doctors, hospitals, and other providers into groups in order to enhance the quality and cost- effectiveness of health care. Managed Care Organizations (MCO) includes HMO, PPO, POS, EPO, PHO, IDS, AHP, IPA, etc. Managed care has effectively formed a “go-between”, brokerage or third party arrangement by existing as the gatekeeper between payers and providers and patients. Any system of health payment or delivery arrangements where the plan attempts to control or coordinate use of health services by its enrolled members in order to contain health expenditures, improve quality, or both. Arrangements often involve a defined delivery system of providers with...

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