Preview

Managed Care

Better Essays
Open Document
Open Document
1382 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Managed Care
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 kinds. In order to assist patients in an exact geographic area, the providers discount their fee in order to have a contract with Managed Care Organizations. By providing this price cut, the patients are more likely to visit their practice or hospital. The cohort of providers can be a health maintenance organization or a preferred provider organization, depending on how restrictive the alliance is as well as how much money they can command for their services in a particular market.
Kaiser Permanente, an integrated managed care organization, has a partnership with Managed Care Organizations. Kaiser Permanente was founded in 1945 by physician Sidney Garfield and industrialist Henry J. Kaiser. Managed Care Organizations integrates their financing and delivery medical care with the goal of providing a predetermined budget to a served society. Kaiser Permanente is a United States based, non-profit operating league, focusing on the major health care issues facing the nation. As do all non-profit organizations, as Permanente future look on healthcare (2008-2010) uses excess revenues to reach this goal rather than distribute them as profits or dividends. In today’s world, there are hundreds of thousands of non-profit organizations



Cited: Francis J. Crosson, & Laura A. Tollen. (2010). Partners In Health How Physicians and Hospitals can be accountable together. Institute for health Policy Bodenhiemier T, Berry –Millett R. (October 15 2009). Follow the Money-Controlling Expenditures by Improving Care for patient needing. Vol 361, 1521-1523 Oakland, California. (April 29 2010). The Success Of Kaiser Permanente, an Integrated American health-care firm, offers lessons for insurers and Hospitals at home and board. Permanente, Kaiser. (2008-2010) What Should Health Care look like in the future? Retrieved from < xnet.kp.org/future/ > Permanente, Kaiser. (October 21, 2008) Kaiser Permanente Has Most Hospitals In Nation with Inpatient Electronic Health Record. Retrieved from < xnet.kp.org/newscenter/pressreleases/nat/2008/102108inpatientehr.html >

You May Also Find These Documents Helpful

  • Better Essays

    Managed care organizations can save money by providing lower prices through contracting large volumes of services and reducing the amount of hospitalizations (Getzen & Allen, 2011). This essay presents a scenario in which I am a representative of Castor Collins Health Plans responsible for maximizing profits and minimizing risks. Within my job description, I am advised to develop a comprehensive health insurance plan for two entities: ConstructIt and E – Editors. This essay explains the company’s employee demographics, health risk factors, premium amount the company is willing to pay, and what company I chose to offer a health insurance plan. Based upon my analysis of potential utilization, I will provide two reasons…

    • 1187 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    The cost of health care in the United States remains an important concern for American consumers. The challenges for controlling costs and providing a better health care system are various and complex. These challenges, in many cases, are in the realm of the Department of Health and Human Services (HHS) or other federal or state agencies (Department of Justice, 2012). Hospitals continue to team up with other facilities, insurers and for-profit companies, although the cause of the bump in M&A activity varies. While some hospitals cite financial problems, others join forces because of collaboration mandated under the Affordable Care Act and changing reimbursement models, according to Minnesota Public Radio (Caramenico, 2012).…

    • 1722 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    The healthcare sector in the US has been in the spotlight for some time now regarding economic issues that intimidate to obstruct the entire system. This has led to an uproar particularly from the public that tends to feel the tweak the most and things keep on getting worse by each day. There is a emphasis on the over 46 million Americans who are uninsured, as well as the insured people, continue to wrestle with the problem of the ever increasing and the consequential out-of-pocket costs. The Obama Administration and the Congress are persistently engaged in ways that can subsidize health care spending, but they as well as other stakeholders need to transfer with speed in order to reinstate some bring the sector under control. In this paper I will discuss the most important and pressing economic issues that confront the United States healthcare industry today and will continue to do so into the next decade, analyze the most significant economic effects of the economic issues on healthcare industry, discuss entities stakeholders may use to address the selected issues from an economic perspective, determine the strategic manner in which the United States can apply best economic best practices from other countries in addressing these issues, assess the likelihood of government and or private sector effectively addressing the issues.…

    • 3134 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    According to the organization’s website in 2002, Kaiser Permanente and CAPH/SNI entered into a formal business cooperative effort to broaden their ability to offer quality care as well as work towards improving the type of health care that is available in many communities regardless of their economic standing. This goal is not only one that would benefit the communities in which they are used but also serve to broaden the vision of those involved in the partnership at the state and local levels between community health care providers, organizations and leaders and staff of Kaiser Permanente to cooperate towards mutal objectives which…

    • 1780 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Observing from my classmates I have learned from them that there are six types of managed care models. There are the health maintenance organizations (HMOs), the preferred provider organizations (PPOs), exclusive provider organizations (EPOs), physician hospital organizations (PHOs), point-of-service (POS) plans, and provider-sponsored organizations…

    • 290 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Electronic Medical Records Transform Healthcare: Potential Health Benefits, Savings and Costs.” Health Affairs (2005) Vol 24…

    • 2692 Words
    • 11 Pages
    Best Essays
  • Powerful Essays

    The HMO sells the health insurance coverage to customers on a per capita basis. The HMO assumes all responsibilities including financial risk for providing the care. The HMO is reliant on the providers to assess the HMO member’s condition and to provide appropriate levels of care. From the health care facility perspective, Health Maintenance Organization (HMOs) objective is to maximize profit, in efforts to increase and improve the quality of care to its members while the physician objective is to maximize net income. Healthcare providers will be forced to become more pre-conscious and cost-effective if HMOs gain market shares.…

    • 1751 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    One solution to managed care in health care is the keeping the cost of the health care down. According to "Health Care Cost Control: Getting on the Right Track" (2002), “A real solution will, of necessity, involve pain for all players in health care: employers, government, providers, insurers, pharmaceutical and medical technology companies, and consumers.” To regain control over the heath care crisis the purchasers and the consumers need to come together and decide what the best resolution would be best for them. They will also need to determine what it is that they are willing to sacrifice in order to reduce the high rate of the health care cost. If this doesn’t work the only other alternative would be for the government to step in and decide what needs to mandated, nobody wants this to happen.…

    • 727 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Evolution of Managed Care

    • 1519 Words
    • 7 Pages

    References: Davis, K., Collins, K., & Morris, C. (2006). Managed Care: Promise and Concerns. Retrieved on August 25, 2010, from http://content.healthaffairs.org/cgi/reprint/13/4/178.pdf…

    • 1519 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Management

    • 861 Words
    • 4 Pages

    Aetna 's managed care organization mission is to help people find quality health care at a low cost so they can achieve financial security and maintain a healthy status. They work with doctors, hospitals, employers, patients, public officials, and others so they can build a stronger health care system for the public (Aetna Inc, 2001). Humana 's managed care organization helps the public find out how their government works and how they can get involved (Humana, 2012). Humana helps deliver new innovations and they provide guidance to the public so that they can make health care and health benefit decisions. United Health Group managed care organization as a goal of helping people get healthier by helping to improve the health care system. United Health group has products and services that empowers individuals, expand consumer choice and strengthens patient-provider relationships across the health care spectrum (UnitedHealth Group, 2013).…

    • 861 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Managed care

    • 906 Words
    • 4 Pages

    Managed health care is a system of health care delivery managed by a company aiming mainly at quality/value cost effective services provided to patients. It has been introduced with an intention to avoid paying for unessential facilities and services directly to physicians. It helps in forming an intermediate between patients and physicians in such a way that health insurance organizations pay the physicians from the premiums paid by patients to insurers for the services provided. This helps in monitoring how cost effectively the services are utilized. It is not to be mistaken as health care delivery at discounted prices. It’s goal is to provide quality care at affordable prices by restricting patient’s choice of physicians and physicians limiting their fees. People who seek care in America are mostly enrolled in health care plans such as health maintenance organizations(HMOs) and preferred provider organizations(PPOs).The less common plan people are enrolled in is point-of-service(POS) which has features of both HMO and PPO.HMO provides integrated and preventive care services to voluntarily enrolled families with low premiums within the network of doctors and hospitals that belong to the organization. It requires to select a primary care physician(PCP) who serves as a personal doctor to provide all basic health care services. PCPs include family physicians and internal medicine physicians. Some HMOs consider pediatricians(for children), gynecologists(for women) as PCPs. Before seeing a specialist or for a diagnostic service, it is required to obtain a referral from PCP(“gatekeeper”). If an outside specialist is chosen or referral is not obtained before seeing a specialist, no coverage for services is rendered by HMO. All or most of the cost for the care must be taken care by the individual. In contrast to HMO, with a PPO it is not necessary to select a single doctor as policy holder’s PCP nor is it necessary to…

    • 906 Words
    • 4 Pages
    Good Essays
  • Best Essays

    During the 1970s- and early 1990s, Managed Care Organizations (MCOs) dominated the face of health care. They were an attempt by the government and insurance agencies to help reduce the rising and expensive costs of healthcare. In some ways these plans were effective, and in others they were not. MCOs are still very present today in health care, however the bill known as the Affordable Care Act of 2010 (ACA) included plans to change the face of MCOs as we now know them. In order to do so, plans have been made to form and introduce Accountable Care Organizations (ACO). This plan has been described as being just another integrated delivery system linking physicians together…

    • 3935 Words
    • 113 Pages
    Best Essays
  • Powerful Essays

    Individual payments for health care services received have undergone many changes over the past one hundred and fifty years in this country. For many years a fee for service system was in place. This was acceptable at the time because costs were low. However, as costs began to rise, changes in the system occurred as well. Private insurance companies started to form in the 1920s to help consumers afford medical care when needed. Through several evolutions over the years and due to increased costs of medical care, we saw new market oriented public policy initiatives starting to form by the 1980s. In 1970 health care spending represented 7% of the national income, but by 1993 it grew to 13.4% (White, 2004). Health care costs were starting to get out of hand and something needed to be done to address it. "In the public sector, important initiatives included the introduction of the Medicare Prospective Payment System, a range of state reform efforts, and the Clinton administration 's health reform initiative. At the same time, private insurers introduced changes that set in motion a fundamental restructuring of relationships in the health care market place, ultimately giving rise to managed care" (White, 2004). This paper will discuss the rationale, effectiveness, strengths, and weaknesses behind this relatively young reimbursement payment system called managed care.…

    • 1167 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Types Of Managed Care

    • 133 Words
    • 1 Page

    Managed care plans are a type of healthcare insurance that have contracts with healthcare providers and other medical facilities where they can provide medical services at a lower price. Depending on the networks rules determines how much care your plan will pay for.…

    • 133 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    Managed Care

    • 3374 Words
    • 14 Pages

    Managed care is the most common form of health insurance in the United States, and provides…

    • 3374 Words
    • 14 Pages
    Better Essays