What is the concept of managed care?

Managed care is fundamentally a health insurance approach that emphasizes cost reduction through coordinated care. This model integrates the delivery and financing of healthcare services to improve efficiency, enhance quality, and reduce costs. Managed care organizations often establish networks of providers and facilities that work collaboratively to manage patient care effectively. By coordinating services, these organizations strive to prevent unnecessary procedures, increase preventive care, and ensure that patients receive appropriate care in a timely manner.

In managed care, there is a focus on maintaining health through preventive measures and managing chronic illnesses, which helps keep overall healthcare costs down. This model typically involves pre-authorizations for certain treatments, a primary care physician directing patient care, and various care management programs. By prioritizing coordinated care and emphasizing the management of patient health, managed care aims to provide a more integrated healthcare experience for patients while controlling expenditures for both insurers and members.