Stakeholder analysis

The Impact of Managed Care on Healthcare Providers and Patients

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Managed care has revolutionized the method of healthcare services which has influenced the relationship between the healthcare provider and patient (Tietze 2003 . The concept of managed care was created to provide optimal healthcare services at an affordable price (Tietze 2003 . Managed care seeks to reduce the cost of healthcare by eliminating healthcare services that are not needed , emphasizing access to preventative care services , and coordinating healthcare services (Tietze 2003 . Current literature demonstrates that healthcare providers share concerns with managed care

regarding the following areas , patient access to providers and substandard patient treatment (Tietze 2003 Managed care has affected both the healthcare provider and administrator each differently which impacts patient care (Tietze 2003

Managed Care Philosophy

The introduction of managed care to the healthcare industry has highlighted a need for healthcare providers to develop innovative methods to continue to provide optimal healthcare services at a reduced cost (Majkowski 1997 . The inception of managed care forced healthcare providers to control costs by reducing units costs , overhead , expediting administrative decision making and developing performance measures (Majkowski 1997 . Majkowski (1997 ) identified the following ways managed care changed price patterns : lowered utilization costs , increasing the percentage of the population in lower utilization managed segments changed practice patterns , lowered high priced utilization management segments . Lowering overhead expenses for healthcare organization increases the viability of achieving success (Majkowski 1997

Empowerment is defined as a creation of a culture where individuals make responsible decisions with substantial knowledge...