What is the difference between managed care systems and MCOs (managed care organizations)?

Running head : MANAGED CARE

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Problem or issue that necessitates writing of this article

The article seeks to identify the problems that face managed care organization (MCOs ) in contemporary competitive environment which include broad public opinion , competitive realities , need for cost reduction . The article also notes that there has been an increase in health care cost despite the establishment of the managed health care systems implemented through the managed care organizations . Increase in cost remains to be a major concern for patients /consumers . Due

to this patients are ready to switch from one plan to another in which cost difference in premium is as little as 15 .00 per month . The article also claims that there has been concern from the society as far as quality of managed healthcare service is concerned . Such concerns encompass accessibility , and the verification of what is `medically necessary including the diagnosis tests and referrals . Other concern is freedom of choice . Additionally , perceived quality which is increasingly valued by contemporary patients /consumers has been lacking in the managed care organizations (Entrepreneur 1998

Strategies or techniques are used to solve the problem or address the issue

This article proposes application of institutional theory to MCOs performance as well as strategic planning . Over emphasizing of institutional theory at the expense of strategic planning will not help the managed care organization to survive in the contemporary competitive environment . The article proposes a strategy that will respond and conform to the needs of the patients...