What is managed care? List the main objectives of managed care.

What will be an ideal response?


• Managed care covers a wide variety of organizational forms, and in any one of the organizational forms, there are three or four separate subunits that make up the whole.
• Managed care is an organized effort by health insurance plans and providers to use financial incentives and organizational arrangements to alter provider and patient behavior so that health care services are delivered and utilized in a more efficient and lower-cost manner.
• The main objectives of managed care include the following:
• Enhance cost containment.
• Implement some forms of rationing.
• Promote administrative and clinical efficiency.
• Reduce duplication of services.
• Enhance appropriateness of care.
• Promote comprehensive contracting mechanisms.
• Manage care processes by managing provider and consumer behavior.

Health Professions

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