How does managed care affect the economics of health care delivery?

Question

a. Provides incentives for smaller private or individual hospitals
b. Increases the tax bases for the community
c. Uses corporate economics to achieve a profit
d. Decreases duplicate processes and redun-dant facilities

Answer 1

D
The corporatization of health care amalgamates the smaller health care operations into the larger organizations to decrease duplicate and redundant health care provisions. For example, one hos-pital would provide a high level of cardiac care, and another hospital would focus on oncology. Managed care does not increase community tax base because the costs are paid by the patients and their insurance. Managed care is more of an incentive for larger hospitals and corporations. The focus is to reduce duplication of services, not to use corporate economics to achieve a profit.