Evolution of Managed Care

Topics: Health care, Managed care, Preferred provider organization, Health insurance / Pages: 7 (1519 words) / Published: Nov 18th, 2010
Evolution of Managed Care HCS/235

Evolution of Managed Care Managed care is a type of system that was formed to help control the costs and quality to health care services; this will give access to services to specific groups of covered patients. The system was created to help the patients (customers) to receive services without having the full financial burden (University of Washington, 1998). The managed care services’ goal is to be able to help individuals and their families by providing health care services that is affordable. This type of managed care will help employees or individuals by requiring a set fee to be paid to the physician for visits, a co-pay and monthly premium to be paid to the insurance company. This will lower the amount that the patient has to pay. There have been many demands that have been needed in the managed care system; changes have had to be made to keep improving the health care services to help it to continue to grow. This paper will cover how the managed care began, in addition to how the system has grown and the changes of the system.

The Beginning The start of managed care is found in the early nineteenth century, a physician the name Dr. Michael Shadid and a group organization that was dedicated to water and power. They were from Los Angeles and the water and power group provided service to a few thousand people. In 1929 in Oklahoma, Dr. Shadid started a health care plan for the rural farmers. He had to deal with resistance from the physicians that were already working there. Dr. Shadid was determined to provide health care to several hundred families under a predetermined fee with the help from the Oklahoma Farmer’ Union (Tufts Managed Care Institute, 1998). In 1929 the organization that was dedicated to the water and power started to offer services that was similar to Dr. Shadid’s. This organization contracted two physicians, Dr. Ross and Dr. Loos to provide health care services to the



References: Davis, K., Collins, K., & Morris, C. (2006). Managed Care: Promise and Concerns. Retrieved on August 25, 2010, from http://content.healthaffairs.org/cgi/reprint/13/4/178.pdf Tufts Managed Care Institute. (1998). A brief History of Managed Care. Retrieved on August 25, 2010, from http://www.thci.org/downloads/BriefHist.pdf University Of Washington. (1998). Managed Care. Retrieved on August 25, 2010, from http://depts.washington.edu/bioethx/topics/manag.html

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