The term "managed care" in healthcare refers to a healthcare delivery system that is designed to manage cost, utilization, and quality of care. This approach operates by integrating the financing and delivery of care, focusing on standardizing healthcare services to ensure that patients receive necessary care while minimizing unnecessary expenses and ensuring high-quality outcomes.
Managed care organizations, such as Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs), work to coordinate services among various providers, which can lead to more efficient care for patients. They typically employ strategies such as preventive care, disease management programs, and utilization review to maintain quality while controlling costs, aiming to improve the overall health of their members while ensuring accessibility to necessary services.
This multi-faceted approach to managing healthcare allows for the development of care protocols that prioritize effective utilization, patient education, and community resources, ultimately benefiting both patients and healthcare providers.