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Related Experiment Videos

Beyond managed costs.

G T Savage1, K S Campbell, T Patman

  • 1Department of Management & Marketing, Culverhouse College of Commerce and Business Administration, University of Alabama, Tuscaloosa, USA.

Health Care Management Review
|March 11, 2000
PubMed
Summary
This summary is machine-generated.

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Managed care organizations (MCOs) face challenges due to rising healthcare costs and unsupportive stakeholders. MCOs must collaborate with others to address critical health issues, moving beyond cost containment alone.

Area of Science:

  • Health Services Research
  • Healthcare Management
  • Public Health Policy

Background:

  • Managed care organizations (MCOs) are experiencing market expansion through consolidation and price competition.
  • However, rising healthcare expenditures and stakeholder unsupportiveness threaten the core cost-containment function of MCOs.
  • The MCO business environment faces declining munificence, particularly from supplier and buyer stakeholders.

Purpose of the Study:

  • To analyze the current situation and future outlook for managed care organizations (MCOs) in the U.S. healthcare system.
  • To identify key drivers of change impacting health management.
  • To assess the competitive landscape and stakeholder dynamics within the MCO industry.

Main Methods:

  • Discussion of four primary drivers of change: technology, regulation, consumerism, and demographics.

Related Experiment Videos

  • Competitive analysis of the MCO industry.
  • Stakeholder analysis to evaluate relationships and support.
  • Main Results:

    • The analyses indicate a significant decline in the munificence of the MCO business environment.
    • Supplier and buyer stakeholders show diminished support for MCOs.
    • MCOs can no longer solely rely on cost management for sufficient stakeholder backing.

    Conclusions:

    • Managed care organizations must evolve beyond isolated cost containment strategies.
    • Collaboration with diverse stakeholders is essential to address critical healthcare issues.
    • Learning from innovative healthcare initiatives, both domestic and international, is crucial for MCOs' future success.