Materiel managers: survival under managed care

Managed care by healthcare providers is becoming the method of choice for controlling costs. Insurance companies, employers, employees as well as healthcare providers are all doing what they can to understand and practice economical managed care. With financial systems that reimburse healthcare providers now moving to a capitated approach, providers need to get away from a cost-plus mentality. More than ever materiel managers need to realize that providers are moving from revenue to expense accounting. Under capitation many, if not all, of management philosophy must change to compete in the new healthcare delivery environment.