Managed Care Nursing Essay

Managed Care Nursing Essay

Managed Care  Definition of managed care Managed care has been used to define a variety of techniques aimed at reducing the cost of providing health services. In addition to this, the definition also encompasses organizations that utilize these techniques in providing health care.

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Managed care is elusive of clear definitions. This can be attributed to the fact that it refers to both programs and care handled by organizations.

The programs look into the coordination, rationalization and delivery channels of care. These channels ensure that the programs avoid risks at all costs. Organizations involved in managed care assume responsibility of all financial risks involved.

According to ‘‘The Basics of Managed Care’’ managed care system dates back to 1973 when politicians took practical steps towards changing American health care program. The transformation revolutionized health care into a profit making venture for the insurance industry.

Health costs soared to the roof. Service providers made large sums of money as consumers shied away from Health costs. Strategies were adopted aimed at modifying both the consumer and the providers’ behavior. Consumer focused strategies took the form of co-insurance levying.

Provider based strategies aimed at changing the mode of payment at hospitals.

Insurance companies altered the modes of payment. Managed care is different from conventional health insurance in that the managed care organizations can either directly provide services or provide the services through contractual agreements. ……………………

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