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Essay on Different Types of Managed Care

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The accelerating costs of US healthcare, the economic downturn, and reform outcry have revitalize interest in integrated delivery systems (IDS). However, this is not a new concept. Shortell and McCurdy (2010) define IDS as a “network of organizations that directly provides or arranges to provide a coordinated continuum of services to a defined population and is able and willing to be held accountable for the cost, quality and outcomes of care and, the health status of the population served”(p.370). Today, many healthcare providers believe in the integrated delivery system; in fact, Strandberg-Larsen and Krasnik (2009) state that many think that it would lead to higher quality care, lower cost, and the maintenance or improvement the…show more content…
A similar IDS model to IPA is the Physician Practice Management Companies (PPMCs). Under the PPMC model, HMOs contract with PPMCs to provide care for members at reduced costs and like IPA, PPMCs are made up of physicians and there is no association with hospitals .However, Kongstvedt (2007) argues that there has been a decline in the number of PPMCs since the late 1990.Like IPA and PPMC, Group Practice Without Walls (GPWW) is another integrated delivery system that does not require the participation of a hospital. However, Kongstvedt (2007) states that GPWW is a legal entity created by private physicians merging their practices as one. Under this model, GPWW is owned and operated by the physician members. In regards to contracts, GPWW would negotiate with MCOs as a single entity and when a portion of physician’s income is at risk in IPA model, Kongstvedt (2007) argues that the group income has a direct effect on physician income in GPWW model. Unlike the IPA, PPMC, and GPWW models, Physician hospital organization (PHO) IDS model is the legal entity which requires the participation a hospital and as well physicians. The PHO would
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