Question

In your own words, explain contracting approaches for physicians and hospitals under managed care plans.

Please note that only original material earns points. Including a reference is required for any source you use. However, you need to include quotes for any copied material. Also you need to compose the majority of the post in your own words so use quotes sparingly. Follow the 80/20 Rule.

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Answer 1

Managed care plans are nothing but the Health Insurance. Health Insurance protects the family and helps financially when a family in need of medical emergency. Health Insurance serves as a part of every single working person and will be used when in need during the hospitalization of the person insured or the dependants. Most of the health insurance will have a tie up with many of the big hospitals and they are in sync.

Most of the Managed care plans will have the list of hospital and they will be chosen based on the ranking which is being done by the Insurance providers. The hospital will be a part of the Insurance list only when the hospital matches the expectation of the insurance providers when it comes to service and cost associated with it. Also the hospital would pay a percentage of money to the insurance vendor for having the hospital name in the list of hospital. The reason being hospital gains many patients for having the hospital name under the umbrella of Insurance vendor.

This is both beneficial to all the three parties. It helps the patient and the family to accommodate the money during emergency when they are admitted. For the Insurance Company it helps to run their business. Until unless the hospitals under the umbrella of Insurance are doing good job, the insurance vendor will have no issues and will be in profit. For the hospital to be in umbrella of insurance will have them added with more patients to be treated and builds the good brand image of the hospital. Having a managed care plans helps to pay for care and protects you financial needs even during the hospitalization and the patient need not spend anything in the hospital. Just provide the insurance document and the company will take care of all financial process with the hospital. This makes the patient not to worry and just be with the patient. It reduces the burden on the family in looking after the financial process. So, contracting the hospitals with Managed care plan is really safe for any family

**** Completely used own words and no reference used. Hence reference link not given