In response to this situation

In response to this situation -...

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In response to this situation, managed care organizations emerged as nonprofit  organizations to reduce health-care costs and provide broader coverage. Managed care  organizations are groups of physicians, specialists, and often hospitals, coordinating  with each other to provide care for a set monthly fee. These systems control the  patient's access to doctors, specialists, laboratories, and treatment facilities. HMOs hire  physicians as salaried employees rather than paying them on a fee-for-service basis. In  this system, the medical clinics receive the same amount of money regardless of how  frequently patients see the doctor. Because no connection exists between services  rendered and fees paid, the incentive is to keep costs down. Critics of this system point  out that business managers or non-medical personnel trying to hold down costs  frequently overturn medical decisions made by doctors. 
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This note was uploaded on 11/21/2011 for the course SOCI 101 taught by Professor Staff during the Fall '09 term at Texas State.

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