Significant Event/Impact on Health Care Organizations: Managed Care

1265 Words Nov 16th, 2009 6 Pages

Significant Historical Event/Impact on Health Care Organizations: Managed Care
Erich Hayman
Monday, May 19, 2008
University of Phoenix
HCS/530, Health Care Organizations
Professor David A. Olsen, MHA Significant Historical Event/Impact on Health Care Organizations “By 1995, managed care plans had become the dominant form of health insurance and enrolled 73 percent of all Americans who were covered by employer-based health benefits (Jenson, Morrisey, Gaffney, and Liston, 1997)” (Mick & Wyttenbach, 2003, p.6). “In comparing the development of the U.S., British, and Canadian health systems, Carolyn Tuohy (1999: 7) argues that “key
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President Nixon legislative answer came as the health maintenance strategy in 1970 and 1971. Legislation set in motion the manage care health system and the inevitable commercialization of modern medicine. “…Paul Ellwood (along with the Nixon administration), a physician specializing in rehabilitation medicine, who through his Minnesota think tank InterStudy promoted the term HMO and saw it as the building block for an entirely different approach to health care reform” (Oliver, 2004). According to the National Library of Medicine, “managed care plans are health insurance plans that contract with health care providers and medical facilities to provide care for members at reduced costs” ( The categories of plans include Health Maintenance Organization (HMO), Preferred Provider Organizations (PPO), and Point of Service (POS). According to the American Heart Association the goals of managed health care ensure that “providers deliver high-quality care in an environment that manages or controls costs, the care delivered is medically necessary and appropriate for the patient’s condition, care is rendered by the most appropriate provider, and care is rendered in the most appropriate , least restrictive setting” ( Due to the customization ability of managed care plans individuals control their respective health coverage and allow cost reduction cooperation between health organizations and
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