Managed care has no standard definition, but its basic structure is as follows:
1) Relationship between doctor and insurer
a. Managed care standardizes medical treatment.
b. Using a method called“monitoring and incentive,” it induces the doctor to select standardized medical treatment.
c. It constructs a doctor & hospital network focussed on the insurer.
2) Relationship between patient and insurer.
a. Managed care puts a restriction on the patient's selection of medical institutions.
b. It systemizes the patient as insured.
Managed care can be regar d ed as an institutional innovation that, by using those setups, improves the two types of inefficiency seen in the medical system (a. inefficiency resulting from a socially superfluous medical demand, and b. inefficiency resulting from the inability to optimally allocate medical resources either spatially or time-wise).
Looking at man aged care performance in the USA (especially HMO), we can see a trend toward the following: a. lower hospital admission rates, b. shorter hospital length of stay, c. less use of expensive procedures, d. greater use of preventive services, e. lower satisfaction with services, and f. higher satisfaction with costs.
On the other hand, the following problems are pointed out: a. lower service quality, b. exclusion of high-risk persons, and c. breakdown of good doctor-patient relationship.
When considering the introduction of the managed care concept and method into the public medical insurance institution of Japan, important factors are as follows:
a. Maintaining an information system that functionally links the medical treatment content to the cost information so that medical treatment standardization can be conducted with evidence based.
b. The necessity of making a system to form the consensus of“standardized medical treatment.”
c. The necessity of establishing an institutional setup for the insurer to act as agent on behalf of the patient.
If managed care is a dopted hastily without solving those issues, its side effects may defeat its purpose.
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