Explain the concept of “managed care.”

Managed care is a healthcare delivery system specifically structured to effectively manage costs, the utilization of medical services, and the quality of care provided to patients. Its primary objective is to provide efficient healthcare services while maintaining cost-effectiveness and ensuring that patients receive appropriate care. This is typically achieved through the establishment of networks of providers, the implementation of protocols for care delivery, and the use of various financial incentives to encourage the appropriate use of healthcare resources.

In a managed care system, techniques such as health maintenance organizations (HMOs), preferred provider organizations (PPOs), and point-of-service plans are utilized to coordinate care, making it easier to monitor patient outcomes and control expenses. By doing so, managed care organizations aim to minimize unnecessary services, promote preventive care, and ensure that patients receive the right care at the right time.

Other options do not align with the true nature of managed care. For example, the notion of unlimited access to healthcare services contradicts the very principles of managed care, which emphasizes the need for regulation and oversight. Increased hospital admissions and decreased outpatient care are not objectives of managed care, as the system typically promotes efficient use of resources and care in less restrictive settings when appropriate. Lastly, while managed care may encompass alternative therapies, its primary focus