According to the book, Health Policy Issues: An Economic Perspective, Managed care affected price competition among hospitals by increasing the competition, changing the physician’s practice patterns, and changing the structure of the health care delivery system. Having a managed care not only decreases medical costs, but stays competitive in the market. Such examples of managed care include health maintenance organizations (HMOs), preferred provider organizations (PPOs), and independent practice organizations (IPAs). Their goal is to reduce the costs by focusing on long-term health. In addition, having to change and cut its premiums will affect the patients. Those in uncompetitive markets that increase competition among hospitals tend to be good for patients and for the society overall.
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Price competition will have their advantage and disadvantage in each hospital. An advantage to managed care is the reduced cost so that consumers are able to afford it. However, the reduced cost may distract the organization from giving the best quality of care to the patients. Thus, it is important to talk with the insurer on what is best for both the person and his or her
Price competition will have their advantage and disadvantage in each hospital. An advantage to managed care is the reduced cost so that consumers are able to afford it. However, the reduced cost may distract the organization from giving the best quality of care to the patients. Thus, it is important to talk with the insurer on what is best for both the person and his or her