Premium Essay

Health Care System Evolution Paper: Managed Care

In:

Submitted By tingrade
Words 994
Pages 4
Health Care System Evolution Paper: Managed Care
HCS/310
March 12, 2012
Shannon Packard

Health Care System Evolution Paper: Managed Care
The evolution of the heath care delivery system in the United States has led to the Managed care initiative. “Managed Care emerged at the early 20th century when the United States lacked private and public health insurance” (Rodwin,p. 653, 2010). Managed Care is defined as “any arrangement in which an organization, such as an HMO, another type of Doctor-Hospital network, or an insurance company, act as an intermediate between the person receiving care and the physician (“managed care,” n.d.). Managed care has influenced the current health care system many times over including spurring the creation of HMOs and PPOs.
Managed care grew significantly partly in response to physicians and other health care providers charging more and more for services provided in a competition to control the medical market (Rodwin, 2010). These physicians had a serious conflict in interest between trying to sell medical services, in an effort to charge more, and doing what was in the best medical interest for the patient. Managed care has brought about significant change in the way the health care delivery system is handled.
Often times, now, a doctor is reimbursed for what is considered, medically necessary, based on a patient’s diagnosis and the normal course of treatment for that diagnosis. They are also reimbursed at a pre-determined rate for specific visit types. This has led to patients needing pre-certification or authorization from their insurance companies for certain tests or procedures. Managed care also lead to the Point of service insurance plans where patients saved money by staying within a specified network of providers. This type of plan is still used today where a patient can save significant amounts of money

Similar Documents

Premium Essay

Hcs 531

...HCS/531 Version 3 Health Care Organizations and Delivery Systems Copyright © 2012, 2011, 2007 by University of Phoenix. All rights reserved. Course Description This course is a comprehensive approach to health care delivery systems that provides the student with an in-depth understanding of health systems and organizations. Students will examine historical evolutions of the health care industry and recent impacts that influence the delivery of health care. Policies Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Shi, L., & Singh, D. A. (2012). Delivering health care in America: A systems approach (5th ed.). Boston, MA: Jones and Bartlett. All electronic materials are available on the student website. Assignment Breakdown Week One Individual Assignment: Significant Health Care Event Paper 10 Week Two Learning Team Assignment: The Evolution of Health Care Paper and Timeline 10 Week...

Words: 2886 - Pages: 12

Premium Essay

The Evolution of Medicaid

...The Evolution of Medicaid Genesis65 HCS/310 April 19, 2010 Barbara Sinacori, RN, MSN, CNRN The Evolution of Medicaid Prior to 1965, the poor elderly in the United States were left with little options when it came to accessing and paying for preventative health related services. As a result, many of the poor in the U.S. went without routine health care or treatment for known illnesses. In response to this growing issue, the Federal government, under the direction of President Lyndon B. Johnson and in conjunction with state governments, established the Medicare program on July 30, 1965 through Title XIX of the Social Security Act (Centers for Medicare and Medicaid Services, 2010). Along with passage of the Medicare Bill in 1965, Congress also passed an insurance program known as Medicaid that would provide health care insurance for various groups of disenfranchised U.S. citizens. This paper will briefly discuss the evolution of the Medicaid program and examine how Medicaid has influenced the current health care system in the United States. The ever-rising cost of health insurance has prohibited many businesses from providing health insurance to their workers, effectively leaving millions of Americans uninsured or underinsured. According to the U.S. Census Bureau (2007), “The number of people without health insurance coverage [in the U.S.] rose from 44.8 million (15.3 percent) in 2005 to 47 million (15.8 percent) in 2006.” Medicaid...

Words: 1112 - Pages: 5

Premium Essay

Health Care Systems

...Running head: HEALTH CARE SYSTEM EVOLUTION PAPER Health Care System Evolution Paper University of Phoenix Sandra Walther/ HCS 310 October 20, 2009 Understanding the roller-coaster experience with the use of market forces in health care over the past ten years provides important context for discussions of likely future developments in the nature of competition (Lesser, 2007). The period began with acceptance of managed care transforming the organization of medical care delivery and proceeded to a period in which many of the changes were reversed. This paper begins with observations on competition in 1995, which is slightly past what one might call the peak of managed care’s influence. It goes on to describe the market and policy responses to the backlash against managed care and then to competition in the post-managed care era; it concludes with some perspectives on the likely evolution of competition over the next few years. Competition in 1995 was highly influenced by the critical mass that managed care had achieved by that point. According to KPMG Peat Marwick’s 1996 survey of employers, 73 percent of those obtaining coverage through employment were in managed care plans, compared with 27 percent eight years earlier. Health maintenance organizations (HMOs) were the most popular plan type, accounting for 31 percent of the market (Lesser, 2007). The benefit structure in managed care plans included far less in the way of financial incentives for patients than had...

Words: 1369 - Pages: 6

Premium Essay

Evolution of Hcis in the Last Two Decades

...Evolution of Health Care Information Systems There has been a very fast growth in the U.S. health care system since the early 1980s with regard to the information technology related to health care. This can be viewed as an attempt towards the standardization of the fragmented health care system. Information technology like in every other field of life has become a necessity even in the health care system and is covered by the federal regulations. The implementation of the Electronic Health Records (EHR) by 2014 has become mandated as ordered by President George.W.Bush in 2004 which was seconded by the Joint Commission for the Accreditation of Health Care Organizations (JCAHO) and Health Insurance Portability and Accountability Act (HIPAA). These organizations asked the health care providers to comply with the new legislation and those community-based physician practices who were earlier reluctant to accept and implement it have now realized that the health care in sequence systems in the form of CPOE (computerized physician order entry), EMR (electronic medical records), the tele-medicine, complex disease management, and automated billing systems are very beneficial to them The paper intends to showcase the comparison and contrast between a contemporary health care facility and a traditional health care facility which prevailed before twenty years. At least two major events and technological advantages influencing the practice of the current health care information system...

Words: 1723 - Pages: 7

Premium Essay

Significant Health Care Paper

...Significant Health Care Event Paper Sarah Miller HCS/531 February 22, 2015 Instructor: Georgetta Baptist Abstract Managed care has changed health care as a whole. Before managed care, providers were not knowledgeable about public health. Managed care made big changes for public health, and gave access to health care for those individuals who lived in rural areas, who otherwise could not have it, or the middle class that made too much for government insurance, but not enough to afford private insurance. How Managed Care Has Changed Health Care As previously mentioned, health care providers did not have much knowledge of public health before managed care came about for the health care industry. Before managed care, ideas such as immunizations, management of infectious diseases, diagnostics, and laboratory testing were both public and personal health entities. They were mainly funded by government programs, but could be funded by third party payers without the instances of prior authorization. Patients were also free to choose what providers they had, and the insurance companies had little control over how the benefits were utilized. Today, managed care is the most utilized type of insurance in this country. The plans can differ from a loosely structured networks that give the provider and client more choices, to a tight health maintenance program. The looser structured programs provide limited controls on how it is used based on providers who would offer...

Words: 741 - Pages: 3

Premium Essay

Economic Tools and Concepts Paper

...Economic tools and concepts paper Nadine Ranger HCS/552 November 29, 2010 James Hamilton Economic Tools and Concepts Paper One of the most prominent topics in the society today is health care reform and government plays a large role in regulating managed health care systems. A vast difference between movement along and shift in the demand curve for the different health care systems. For instance, the government funds Medicaid and Medicare to provide services to the indigent and disabled population. However, many factors exist that influence the control of health care spending from an economic standpoint. The objective of this paper is to discuss the role of government and the supply and demand curves concept to show the difference between movement along and shift of the curves in the managed care system. The concept of medical price elasticity to evaluate the manage health care industry is also discussed. Resource Allocation Law makers presented several proposals for health care reform and the final bill passed with the intention of providing health care to all Americans. One important issue concerning many consumers about health care reform is the selection of an appropriate managed health care program because one must choose a managed care provider by December 31, 2010. The application of principles to understand the health care systems is challenging because of the complexity of health care as a product or service; however, the fundamental problem...

Words: 1446 - Pages: 6

Premium Essay

Long Term Care

...|College of Natural Sciences | | |HCS/235 Version 3 | | |Health Care Delivery in the U.S. | Whenever there is a question about what and when assignments are due, please remember this syllabus is considered the ruling document along with your Instructors Policies and Course Requirements located in our Course-materials forum. You will also find our Course Calendar at the end of this Syllabus. This will assist you with when all assignments and DQ’s are due. Course Description This course provides a broad overview of the various functions of the United States health care system. The historical evolution of health care is examined. The student is introduced to the various forms of provider models and service delivery systems found in private and public health sectors, including ambulatory, acute, mental, and long-term care. The financing aspects of health care and their influence on health care delivery and quality are outlined. Policies Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies:...

Words: 3427 - Pages: 14

Premium Essay

Evolution of Health Care Information Systems

...Evolution of Health Care Information Systems Since the early 1980s, the U.S. health care system has experienced a rapid growth in the sector of health care information technology. This growth can be viewed as an attempt to standardize our fragmented health care system. The health care information technology is no longer an option but a necessity to be compliant with the mandated federal regulations. President George W. Bush in 2004 asked health care providers to implement Electronic Health Records (EHR) by 2014. The Joint Commission for the Accreditation of Health Care Organizations (JCAHO) and Health Insurance Portability and Accountability Act (HIPAA) also joined this initiative by asking health care providers to be compliant with the new legislation. Many community-based physician practices previously reluctant to embrace technology are realizing the benefits of the health care information systems, such as computerized physician order entry (CPOE), electronic medical records (EMR), tele-medicine, complex disease management, and automated billing systems. The purpose of this paper is to compare and contrast a contemporary health care facility with a health care facility of 20 years ago. Additionally, the paper will identify at least two major events and technological advantages that influenced the current health care information system (HCIS) practices. Definition of Health Care Information Systems Prior to discussing the evolution of HCIS in the last two decades, it would...

Words: 1550 - Pages: 7

Premium Essay

Mental Illnesses

...The term “mental health care” may mean many things in different peoples perspectives or opinions, it may mean more common treatments such as therapy, family or individual, or it may entail more specific types of treatments for more severe mental illnesses such as Major Depressive disorder(MDD), Bipolar, and Schizophrenia. The way mental health care will be referred to in this paper is the care, treatment, and conditions of any type of mental illness patient. A very small amount of these mental illnesses may include any form of dementia, autism, Major Depressive Disorder(MDD), Schizophrenia, and attention deficit disorders(ADD). This term also refers to the quality of care given to any patient no matter in which situation it is given, inpatient,...

Words: 1004 - Pages: 5

Premium Essay

Essay Term Paper

...* Skip to Navigation * Skip to Content TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory * Join * Search * Browse * Saved Papers ------------------------------------------------- Top of Form Search Bottom of Form * Home Page » * Other Topics Rising Health Care Cost In: Other Topics Rising Health Care Cost Courtney Sheegog May. 8th, 2013 Hca/210 Rising Health Care Cost Assignment • What are some of the driving forces behind rising health care spending? One of the driving forces behind rising health care spending is Technology and Prescription drugs, chronic disease, aging of the population, Administrative costs.   For several years, spending on new medical technology and prescription drugs has been the leading contributor to the increase in overall health spending. (Healthcare reform .Gov. ,2011). Longer life spans, and greater prevalence of chronic illnesses. This has placed tremendous demands on the health care system, particularly an increased need for treatment of ongoing illnesses and long-term care services such as nursing homes; it is estimated that health care costs for chronic disease treatment account for over 75% of national health expenditures (Kaiser Edu.org, 2010). How do HMOs affect health care costs? HMO's often emphasize their ability to contain costs through oversight of physicians' decisions or by implementation of a capped payment scheme that aligns physicians' incentives...

Words: 483 - Pages: 2

Premium Essay

Health Care Economics

...Health Care Economics Dana Carter HCS 440 November 17, 2010 Tom Flora, PhD Health Care Economics Health care costs have risen steadily for years. “Health care expenditures reported in 2008 exceeded $2.3 trillion” (Kaiser Family Foundation, 2010, para 1). This figure reportedly will increase throughout the 21st century unless the government, employers, and consumers can work together to stem this out of control growth. The history of health care is short but it provides a small view of how the United States made a simple choice of demand and supply through fee-for-service to managed care, PPOs, and other insurers of health care including the federal government. Fee-for-service in the early 1900s was the norm for the American public. Insurance companies did not provide health care, and if they provided the service it was only available to a few wealthy people. Physicians charged a set price based on the ailment or disease, they were paid in goods or money. In the 60s and 70s it was becoming popular for employers to pay health insurance and employers realized that if they provided this essential benefit, the productivity and profits would increase because his or her employee is healthier. At the end of the 70s Americans were demanding health benefits and in the advent of the demand the cost of health increased. The government entered the health insurance arena in 1965 with the passage of Medicare and Medicaid, which covered people without health insurance and elderly...

Words: 806 - Pages: 4

Premium Essay

Health Caare History

... Health Care History The United States health care system is currently getting ready to evolve tremendously through the organization, management structure, and payment structures. The economic component in health care is very important to understand in order to structure it successfully. This papers discusses the evolution of economics in the health care system and the structure of health care funding timeline. History and Evolution Health care economics presents an information framework were efficiency and equity goals are pursued. Furthermore, economics establishes a framework by maximizing benefits using resources at hand. Kenneth Arrow, the person responsible for mentioning the idea of health economics as a discipline, wrote an article titled “Uncertainty and the Welfare Economies of Medical Care” in 1963. The article discusses how the medical care industry benefits society compared to the “norm”. Furthermore, Mr. Arrow wrote about the significance of supply and demand. Arrow discussed that the average person has the characteristic of only seeking medical care when they are suffering from a critical injury or illness. Its not common for the average person to receive routine medical services on a regular basis. As Mr. Arrows discussed supply condition, he quoted “Entry to the health care profession is controlled by licensing. Licensing manages the supply which consequently increases the cost of medical care”. Medical care was relatively expensive...

Words: 1394 - Pages: 6

Premium Essay

Economics Paper

...In this paper I will discuss the history and evolution of healthcare economics and the timing of healthcare funding. In the 21st Century healthcare is proven to be one the largest industries that generates a great deal of money in the world. Therehas been a dramtic change in healthcre the last last hundred years. As changes and progression are examined, it becomes clear that healthcare along with the economy has created an important part of the American life. Healthcare History Health care economics presents information where efficiency and equity goals are pursued. Furthermore, economics establishes a framework by maximizing benefits using resources at hand. Kenneth Arrow, the person responsible for mentioning the idea of health economics as a discipline, wrote an article titled “Uncertainty and the Welfare Economies of Medical Care” in 1963. The article discusses how the medical care industry benefits society compared to the “norm”. Furthermore, Mr. Arrow wrote about the significance of supply and demand. Arrow discussed that the average person has the characteristic of only seeking medical care when they are suffering from a critical injury or illness. Its not common for the average person to receive routine medical services on a regular basis. As Mr. Arrows discussed supply condition, he quoted “Entry to the health care profession is controlled by licensing. Licensing manages the supply which consequently increases the cost of medical care”. Medical care was expensive...

Words: 1118 - Pages: 5

Premium Essay

Corporate Governance

...HSA 500 Paper #2 Eric Tompkins Dr. Robert Lindsey Health Service Organization February 17, 2013 1. Compare the three (3) main types of health insurance in the U.S. and assess the solvency of each. Make a prediction regarding the longevity of each type over the next 30 years. Health insurance is essential because it provides people with an affordable way to stay healthy and get medical care when ill. It also protects people and their families from the high cost of health care. In some cases, medical bills can be financially devastating. The likelihood of no insurance is a real risk to many workers who may experience either phases of unemployment or jobs that do not provide health insurance benefits at all.The three most common forms of health insurance plans are fee-for-service, managed care, and consumer directed. Fee-for-service plans mean the doctor or other health care professional will be paid a fee for each health care service provided to the patient. Patients can see the doctor of their choice and either the health care professional or the patient files the claim ("Health insurance 101," 2012). There are two kinds of fee-for-service coverage: basic and major medical. Basic protection pays toward the costs of a hospital room and care while you are in the hospital. It covers some hospital services and supplies, such as x-rays and prescribed medicine. Basic coverage also pays toward the cost of surgery, whether...

Words: 1499 - Pages: 6

Premium Essay

The Primary Care Clinic

...THE PRIMARY CARE CLINIC Your name here Professor’s name here School name here Date The Primary Care Clinic Patients in today’s busy world demand convenience which has lead to the rise of local centralized primary care facilities. The purpose of this paper is to look at forces that have influenced the development of the clinic, a mission statement, key performance indicators to measure effectiveness, decisions regarding clinic expansion, the role of the clinic in the community, and influences of public healthcare policy on outpatient clinics. Discuss the key political, economic, and social forces that may have influenced the development of the clinic. Politics can hamper development of private healthcare organizations by compromising quality, limiting accessibility or feasibility, or increasing the cost of healthcare through laws, regulations, policies, requirements of private practice, and monitoring of services (Griffith & White, 2007). The primary care clinic must balance the requirements and regulations of private practice while creating a market for quality healthcare in the community marketplace. The clinic model has advantages over other models in that it allows practitioners a level of economy in sharing their medical facilities, equipment and staff with others, minimizing overhead and allowing them to keep the rising cost of healthcare lower by sharing equity. Improved patient quality is...

Words: 1590 - Pages: 7