What is managed care?

• A. Payer-Specific Networks
• B. Long-Term Care Facilities
• C. Health Services Aimed to Reduce Costs
• D. Hospitals in Rural Areas

Answer: (C)

Managed care is a health care approach that coordinates patient care and finances to lower overall costs while maintaining quality. It achieves this by organizing provider networks, using primary care physicians as gatekeepers for referrals, and employing preauthorization and utilization management to prevent unnecessary services. Negotiated payment structures and an emphasis on preventive care help control spending and improve outcomes. The aim is to deliver efficient, appropriate care within a managed system rather than paying for every service separately. While networks and geographic reach are features of managed care, the defining goal is cost containment through coordinated care. Long-term care facilities describe a setting for ongoing care, and rural hospitals describe a location; neither captures the overall delivery model that centers on reducing costs through coordination.