Health Care System Evolution Paper: Managed Care

1010 Words Oct 16th, 2012 5 Pages
Health Care System Evolution Paper: Managed Care
March 12, 2012
Shannon Packard

Health Care System Evolution Paper: Managed Care
The evolution of the heath care delivery system in the United States has led to the Managed care initiative. “Managed Care emerged at the early 20th century when the United States lacked private and public health insurance” (Rodwin,p. 653, 2010). Managed Care is defined as “any arrangement in which an organization, such as an HMO, another type of Doctor-Hospital network, or an insurance company, act as an intermediate between the person receiving care and the physician (“managed care,” n.d.). Managed care has influenced the current health care system many times over including spurring the
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These plans can keep their costs down and in turn, the costs to the consumer down by limiting the amount of services offered by the physicians’ in-network. Managed care also brought about capitated care, which has been thought to reduce the amount of services a physician provides to a patient (Fang & Rizzo, 2008). Capitated care pays physicians a rate for each patient who lists them as their primary care provider, regardless of how many times the physician see the patient. This would seem to give the physician more incentive to sell the patient on his or her being the PCP (primary care provider) and less incentive on seeing the patient on a regular basis. However there has been no evidence that capitated plans have any significant effect on physician’s financial incentive in reducing or increasing services to patients. Managed care has started to decrease in its effectiveness in recent years as a product of the increasing costs of health care. With the increase cost Managed care has had to raise its prices for consumers including premiums and especially deductibles. In today’s day and age, patients are better educated about their diagnosis and the course of treatment which should follow (Fang & Rizzo, 2009). This has also caused a problem for Managed care because patients are now expecting certain things to be covered, which years

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