The Institute of Medicine defines managed care as "a destine of techniques used by or on behalf of purchasers of health care benefits to manage health care costs by influencing diligent care decision making through case-by-case assessments of the nicety of care prior to its provision" (Institute of Medicine 1989). The term "managed care," however, is commonly used more broadly to refer to programs designed to stop access to care, types of care delivered, or the amount/costs of care. The purposes of managed care under this broader definition include cost containment and allocation of resources, as well as monitoring and improving quality and/or outcomes of care. To date, cost containment and resource allocation have been emphasized, but we go forth work within the broader definition.
In the next section, we will in short describe relevant forms of service delivery.
Preferred provider organizations (PPOs) are networks of providers that are usually organized by third-party carriers or managed care companies. PPOs reduce their fees to attract consumers; select panels
Dorsey, R., F.J. Ayd, J. Cole, et al. 1979. Psychopharmacological Screening Criteria Development Project. Journal of the American aesculapian Association 241:1021-31.
Source: Adapted with permission from Astrachan et al. (forthcoming).
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