What is one example of managed care?

Health Maintenance Organizations (HMOs) are a prime example of managed care because they represent a model designed to provide comprehensive health services through a network of providers at a predetermined cost. HMOs focus on preventive care, aiming to reduce overall healthcare costs by encouraging early treatment and wellness rather than waiting until illnesses become more severe. This type of organization typically requires members to choose a primary care physician (PCP), who acts as a gatekeeper for specialist referrals and ensures health services align with the overall care plan.

In managed care systems like HMOs, the goal is to manage cost, utilization of resources, and the quality of care provided. By coordinating care within a network, HMOs can ensure that patients receive appropriate services while controlling expenses. This clarity in management makes HMOs a classic example of the managed care concept.