Managed Care

Definition - What does Managed Care mean?

Managed care refers to a series of techniques or a system that is aimed towards controlling and reducing the costs of providing health care benefits while improving the quality of the service or care. Managed care is also commonly referred to as managed healthcare.

WorkplaceTesting explains Managed Care

Managed care relies on a variety of techniques intended to reduce and improve health care benefits including:

  • Economic incentives for physicians and patients when selecting less costly forms of care
  • Programs for reviewing medial necessities of specific services
  • Increased beneficiary cost sharing
  • Controls on inpatient admissions and stay lengths
  • Cost-sharing incentives for outpatient surgery
  • Selective contracting with health care services providers
  • Special management of high-cost health care cases

Managed care was initially used by health maintenance organizations but have since been widely adapted by private health benefit program with varying degrees of control.

This definition was written in the context of Occupational Health and Safety
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