Managed Care System Essay Example | Topics and Well Written Essays - 1000 words

Managed Care System - Essay ExampleTill 1980s there was only a trifle between the public and private players of health care. But, the overall payment system concentrated on fee for service basis. Accordingly, each visit was counted as an episode. The physician had the liberty to administer treatment according to his diagnosis.As private insurance mostly dominated the scene, the physicians, to fulfill their selfish ends, could also recommend for unwanted tests, hospital stays and drugs. Patient safety was their only cap and they could re-jig monetary considerations underneath this consideration. The insurance brokers also never complained as major bill payment was a responsibility of the employers.But, employers understanding this disadvantage started to backlash on the reasons of uncapped outlay and over utilization of resources. This of course was a valid point. As to a greater extent and more are getting enrolled into the health care, fee for service model has become outdated gi ving way for Managed Care Organizations (MCOs). (Christensen. C., Grossman. J., Hwang. J. 2009)As accountability comes into picture, unnecessary expenditure gets curbed automatically. From past 30 years, MCOs have been well placed and growing in the market. The main postulates of their existence areLowered rates of hospital admission, in patient treatment, procedural expenditure. This has resulted in a mixed result of outcomes that some patients were treated satisfactorily while many did not have that contentment astir(predicate) care practices.Development of state insurance sector commensurate to private players. Giving an inevitable choice to the employer and employees to be enrolled into those organizations for reduced health costs. (Anonymous., 2010).All these recommendations by the bill only point out that the MCOs are here to stay for some more time. If not for them, accountability and cost reduction for the insurers purpose fulfillment would never be possible.In short, the a rrangement seeks to reduce the health