Managed Care

1371 Words Mar 1st, 2013 6 Pages
Shakilah McNair
Spring 2012
HSA 268

Millions of individuals live in the United States of America, and they all need effective, affordable and accessible health care coverage and services. Within decades, the scope and cost of health care has changed dramatically with increased complexity and significance to the healthcare market. The purpose of this paper is to analyze the managed care industry and examine how organizations try to control costs.
Managed Care Organizations is a partnership of health care providers whose purpose is to contract with an institution (Crosson & Tollen 2010). The contracting institution can be an establishment, a coverage group, Medicare, Medicaid, a union, an individual, or any connection of these
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There are many reasons as to why cost is such a major issue. For example, health care consumes a great percent of the total economic output. Also, resources are limited and other economic uses are curtailed. If limited resources are not directed to what is most important and used at their highest value (Bodenhiemier, 2009, p 1521), then public spending for health care will not be maintained. Corporations should bear the additional costs. Healthcare charges are surging out of control. Kaiser Permanente has an Integrated Delivery System that delivers the best care at the lowest possible cost. Kaiser Permanente works intensely to keep down cost while also maintaining quality of care. They work with their members to improve lifestyles and maintain wellness. Integrated healthcare systems are found in large multi-specialty medical group practices with transparent pharmacies, labs and hospitals. Kaiser Permanente uses sharing information systems to track the overall healthcare activities of a particular patient. This method is beneficial for the patient because they are able to avoid the hassle of paying co-payments here and there. They offer email and other communication tools between patient and doctor. More importantly, the patient’s personal health record, “My Health Manager” is available online at no extra cost. “My Health Manager” allows the patient to order prescriptions, view their lab

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