Brief Management Analysis Term Paper Example | Topics and Well Written Essays - 1500 words

Brief Management Analysis - Term Paper Example Managed care organizations usually operate as business entities, to make sure that the limited resources are effectively utilized. The original aim of managed care was to stress on the safeguarding of health of the population instead of carrying out expensive interventions once the health of citizens had already been compromised (Risk, 2009). The expression ‘managed care’ speaks for a group of different arrangements that are still being amended and improved for the most part. Four factors are involved in the funding as well as delivery of health care options to the population. These include the suppliers of care, the consumers of the services, the procurer of the care, and the insurer who compensates for care. The expression ‘managed care’ may also be taken to mean preferred provider organizations (PPOs), health maintenance organizations (HMOs), and utilization review. The preferred provider organization (PPO), which works in league with healthcare providers , is responsible for providing covered services for a reasonable fee. Health care providers who operate under definite contracts are identified as ‘preferred providers’. ... The health maintenance organization also provides all the health-care services that are insured at a fixed price in the premium fee. The healthcare consumer has the option of adding co-payments when interested in making office visits as well as other healthcare services. HMOs are also in charge of delivering healthcare through the communication networks built formed among providers. Utilization review refers to the process of assessing the care that is supplied to individual consumers (Kongstvedt, 2009). Utilization review has been utilized broadly in prepaid health-care measures as well as fee-for-service indemnity. Its main objective is to reduce healthcare costs while also enhancing the quality of healthcare. Managed care organizations have historically included the implementation of different prevention initiatives (Risk, 2009). Many MNOs utilize quality improvement and internal performance-measurement systems like the Continuous Quality Improvement (CQI) to test and improve thei r services. Managed care organizations have become a principal source of health care for publicly funded programs such as Medicare and Medicaid as well as the recipients of employer-funded care. In addition, MCOs stand for systems of organized care that usually concentrate on given social groups and are responsible for supporting objectives like prevention activities. The Managed Care Working Group has been at the fore front of proposing recommendations that can foster the integration into managed care of prevention practices. Cost Containment Cost containment proposals have an effect on health care systems through numerous ways. In the first place, cost containment can change the quality of care that