Implications of managed care in a publicly funded health care delivery system

In the light of federal cuts in the Medicaid budget, the Medicaid-funded health delivery system is under severe cost pressures, especially in publicly funded institutions. In the private health insurance industry, managed care innovations have successfully restrained costs. For publicly funded institutions to remain viable, managed care contracts must be implemented for the Medicaid system as well. Managed care holds promise for reducing costs as well as reducing many of the current barriers to quality health care for the indigent.