Get help with any kind of assignment - from a high school essay to a PhD dissertation
Managed Care Introduction Surprisingly, U.S. managed maintenance has been in existence for nearly a century. In 1910 , the Western Clinic of Tacoma, Washington offered medical services through its network of physicians and nurses for the premium payment of $0.50 per member per month. Nearly one hundred decades after, managed care organizations (MCOs) have shifted dramatically with increased complexity and significance to the U.S. health care market. Aggregate earnings for MCOs from the S&P 500 index grew 30% in 2006 to $212.4 billion while earnings per share estimates are anticipated to increase by 15% for 2007. The objective of this paper is to examine the United States' managed care sector in understanding the sources of adulthood. Managed Care Background From 1910 - 1970, MCOs were a small region of the healthcare landscape (see Exhibit 1 for industry timeline). As raising medical costs put budget limitations on government plans, it had been considered that the traditional means of delivering health care was ineffective since healthcare providers (doctors, hospitals, etc.) had no incentive to keep prices to a minimum. In 1973, U.S. Congress passed the Health Maintenance Organization (HMO) Act, which required most employers with higher than 25 workers to offer two federally accredited HMO strategies for its workers. Unfortunately for the market, obtaining federal certification was not a simple procedure. Strict requirements pertaining to minimum benefit standards, quality assurance, and fiscal stability made it difficult for HMOs to comply. However, during the Carter and Reagan administrations (early 1980's), issuance of the regulations became a priority and expansion ensued. Two other components significantly contributed to indu...