What does "managed care" refer to in healthcare?

Managed care refers to a healthcare delivery system that is designed to manage costs, utilization, and quality of care. The primary goal is to provide efficient and effective healthcare services while keeping costs manageable for both healthcare providers and patients. Managed care emphasizes coordination between providers and preventive care to help avoid more expensive interventions down the line.

This approach integrates various healthcare services, including primary care, specialty care, and sometimes hospital services, into a single plan that emphasizes both the quality of care and cost-effectiveness. By developing networks of providers and employing management strategies, managed care organizations aim to streamline healthcare delivery, ensuring that patients receive appropriate care while controlling expenses.

The other options do not accurately depict the full scope or intent of managed care. While some might incorrectly associate managed care with unlimited provider choice, that is typically characteristic of traditional fee-for-service models instead. Additionally, managed care encompasses a wide range of services beyond just inpatient care, and while chronic illness management is an important aspect, managed care strategies are not limited to this area alone.