What does "managed care" encompass?

Managed care encompasses a healthcare delivery system specifically designed to manage the cost, utilization, and quality of care. This approach involves a coordinated effort to provide healthcare services in a manner that is both efficient and effective, often through established networks of providers and contractual agreements with health insurance plans. The goal is to provide high-quality care while containing healthcare costs and improving patient outcomes.

Key elements of managed care include care coordination, preventive services, and a focus on chronic disease management. By emphasizing these aspects, managed care can help ensure that patients receive appropriate services at the right time and minimize unnecessary healthcare spending. This structured environment allows healthcare providers and payers to work together towards shared goals, leading to a more integrated approach to patient care.

While other options present potential aspects related to the broader healthcare landscape, they do not accurately define managed care. For example, eliminating insurance billing or allowing unlimited access to providers does not align with the structured and cost-controlled nature that defines managed care. Similarly, while profitability is important for providers, the primary focus of managed care is on delivering value in healthcare services rather than solely increasing hospital profitability.