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In: Economics

Managed care companies can use multiple mechanism to get patients to use hospitals that are less...

Managed care companies can use multiple mechanism to get patients to use hospitals that are less expensive. What are these mechanisms and what is the most important aspect of a managed company being able to do get patients to use less expensive providers.

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Expert Solution

Managed care organisations are a group of hospital or doctors or any organisation providing nursing or medical care and other medical emergency facilites in a cost effective manner. As proper medical treatment is a need of every human, hence patients seek for a good hospital or doctor to treat their health issues.

A managed care organisations thus need to build goodwill to attract patients to use less expensive medical care facilities than the costlier one. Here are some mechanisms:

1. Quality service : any matter relating to health is of utmost importance. Hence good quality service will build a goodwill for the organisation for the long run.

2. Personal selling: it is important to make people aware about the organisation in existance and thus personal selling marketing technique can be used, wherein it will help to establish a relationship between the patient and the organisation.

3. Consumer awareness: consumers/ patients must be made aware the need to choose cost friendly care facilities, and save for later. A knowledge of proper investing decision making should be given to them.

4. Contracting with clinic and other stores who can form a network to persuade people to opt for managed care services.

5. If managed care services can be provided at the place of patient then it be convenient for the patient and will help in building goodwill easily.

6. Treating people as per their convenience. Patients shouldnt be awaited for long. Prompt serive is in general not seen in case of medical urgencies. Hence it can be alluring to the patients.

7. Patients must be told briefly about the actual cause of their problems and all alternative options to treat that rather than mere prescribing what technique must be undertaken to treat their problems. As seen in many countries, many well known hospitals mislead patients and take an undue advantage to increase their profit. But when patients are briefly explained about everything, they will gain trust towards MCO and will opt for it, even during later stage.


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