What defines managed care in the healthcare system?

Managed care is defined as a system that emphasizes controlling healthcare costs while maintaining quality of care. This is primarily achieved through a network of specific healthcare providers and facilities that patients are encouraged or required to use. The managed care model often includes various strategies such as establishing agreements with providers on treatment costs, implementing pre-approval requirements for certain services, and monitoring the usage of healthcare services to ensure that they are necessary.

By requiring patients to visit certain providers within a network, managed care organizations can negotiate better rates and improve the efficiency of care delivery. This approach aims to reduce unnecessary medical expenses and provide coordinated services, allowing for better overall management of a patient’s healthcare needs. Consequently, this can lead to more streamlined treatment processes and improved health outcomes while still keeping costs in check.