Managed Care definition

Managed care is a healthcare option in which the provider manages the healthcare of an individual, with the aim of focusing on prevention rather than cure and reducing the overall costs of healthcare provision. Managed care utilises a network of established medical resources to provide care, including regular doctors and facilities.

Some of the key features of managed care systems include financial incentives for both doctors and patients to reduce the cost of their care, cost-sharing incentives for outpatient surgery, intensive management of high-cost provisions and oversight on the necessity of certain procedures and plans.

Managed care is common across the United States but has come under fire for failing to control medical costs. Controversy also exists around managed care’s overall impact on the quality of healthcare delivery.