Economic Impact of Managed Care

The Economic Impact of Managed Care

Learning Team B -

HCS 440 Economics: The Financing of Healthcare

Class Group: BSDW1ARZ16

University of Phoenix Online

Geoffrey J. Suszkowski, Ph.D., LFHIMSS

January 20th, 2014

The Economic Impact of Managed Care

Description of  the Issue (300 – 500 words)

Managed care, a system developed in United States in the early 1910’a was to simply reduce the cost of health care and increase the health care qualities. The United States National Library of Medicine describes managed care as, “programs that are intended to reduce unnecessary health care costs through a variety of mechanisms, including: economic incentives for physicians and patients to select less costly forms of care; programs for reviewing the medical necessity of specific services; increased beneficiary cost sharing; controls on inpatient admissions and lengths of stay; the establishment of cost-sharing incentives for outpatient surgery; selective contracting with health care providers; and the intensive management of high-cost health care cases” (National Library of Medicine). However the managed care was in decline due to the fact that it was not able to keep up by providing the lower costs health coverage and better qualities of the act. The rising cost of health care has made it difficult for many people to be able to afford the expenses for their health care treatments. Below are some articles that will provide some examples of how managed care got declined to service its purpose in the health care industry.

Describe the economic impact your selected Healthcare Reform Topic has on the provision of healthcare services to the general public, or, on the healthcare system, depending on your Topic selection

Literature Search 

Article #1 (Title):

Current and future developments in managed care in the United States and implications for Europe

 This article begins with discussion about how health care and the U.S. economy have affected...