The Managed Health Care System

1678 Words Nov 25th, 2015 7 Pages
Assignment 1

Introduction

The managed health care system is a complex process that must align financial incentives and goals. Therefore, managed care is thought of as a complex puzzle that once one piece is moved it will affect the outcomes of the rest of the system (Boyd & Finamn, 2010). As a result, it is essential that the managed care organization have the ability to align its financial incentives with the goals of all parties involved, such as the providers who deliver healthcare services and the health insurance plan with its benefits. The purpose of this paper is to assess the history of managed care.
Meaning of Managed Care: Relevant Scenarios
Managed care has been around since the twentieth century, which managed care has continued to develop. Therefore, the definitions of managed care may vary from different scholars and/or textbooks. As a result, one meaning of managed care is to provide health care services at a reduced rate to members of an insured group through an agreement among specific suppliers and an insurer (Ereflect, 2009). Furthermore, some relevant scenarios for the meaning of managed care are the ability to increase access to a variety of healthcare services, managing medical practice, curbing medical spending, and restricting physician entrepreneurialism (Rodwin, 2010). In addition, managed care has been used by the states and private entities to promote diverse goals (Rodwin, 2010). Therefore, the initial growth of managed care was partly…
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