Health Care System Essay

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Running head: HEALTH CARE SYSTEM EVOLUTION PAPER: MANAGED CARE Health Care System Evolution Paper: Managed Care Patricia Alexander University of Phoenix HCS 310 Michelle Crakes May 11, 2009 Health Care System Evolution Paper: Managed Care What can be said about the evolution of health care delivery systems and how it has influenced the current health care system? Let us examine the evolution of health care delivery as it pertains to managed care. What is managed care? Managed care is the collaboration of suppliers and payers into a single organization developed to manage health care costs by monitoring accessible care and utilization of services within a particular population (Corder, et.al, 1996). Managed care has evolved into the force behind coordinating, managing, and financing healthcare delivery. In as much, top initiatives have developed at an ever-growing pace in communal and legislative efforts on the topic of patient rights. Not to mention, managed care completely changed the health insurance commerce. Those organizations that were triumphant in providing managed care products, such as HMOs, initially began as restricted or provincial HMOs. Traditional insurers were not efficient when it came to this, and one (Aetna) later attained a bigger provincial HMO (U.S. HealthCare) and placed the HMO executives in control of the whole outfit (Health Affairs, 2005). This sparked a trend, thus, resulting in many hospitals entering the insurance business at that time. Dealing with managed care became a significant topic for hospital leaders because one reaction to the progression of managed care was consolidation (Health Affairs, 2005). Even though the trend of implementing managed care caught on quickly, it was not without flaws. Both physicians and consumers became very unhappy and dissatisfied with the use of managed care. Managed

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