What is Managed Care?

Whether you're a beginner or an expert, you will find this Glossary useful.

Managed care refers to a healthcare option in which the provider manages the care of the individual for a fixed fee, emphasizing wellness and prevention rather than the cure. 

Managed care definition

Managed care refers to a healthcare option in which the provider manages the care of the individual for a fixed fee, emphasizing wellness and prevention rather than the cure. The goal of managed care is to provide better quality health care at lesser costs.

Managed care uses a network of established medical resources to provide care, including regular doctors and facilities.


Managed care program types

1. Health maintenance organisation (HMO): where users pay monthly amount to become members and get a primary care physician who takes care of their regular health care.

2. Preferred provider organisation (PPO): where users pay for health care at a discounted rate if they're clients of the insurance companies which are contracted to the health provider organization.

3. Point of service (POS): where users use both features of HMO and PPO combined.



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