Question

discuss how managed care organizations attempt to control costs. What are the benefits and disadvantages associated with these cost controlling measures?

Answer 1

As there is an increase in the health care costs, the managed care organizations are finding ways to control these costs. Previously the patients would pay for the service they were provided from their own pockets or through private health insurance companies or their employer would pay half the expense. Managed care organizations are a group of physicians, specialists or hospitals coordinating with each other to provide care for a monthly fee. Advantages are they control the patient’s access to doctors, specialists, laboratories and treatment facilities. The physicians are given salary. The clinics receive the same amount of money regardless of how often the patients see the doctor. Disadvantages are the patients cannot see other doctors or specialists without the approval of the primary physician, dissatisfaction among patients, the highly trained nurses and physicians were replaced by staffs with lesser trained assistant to save costs. There were many issues like shortage of hospital beds, hospice care and home health care for the patients.