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Related Concept Videos

Methods Of Healthcare Delivery System01:26

Methods Of Healthcare Delivery System

At the different levels of the healthcare system, we see varying methods of healthcare used. These methods include managed care systems, case management, and primary healthcare.
Managed Care System:
The managed care system is designed to control the cost while maintaining the quality of care. The patient's care from admission to discharge is planned by the primary care provider or the case manager, also known as the gatekeeper. In a managed care system, the number of care providers is limited...
Health Information Technology and Healthcare Information System01:30

Health Information Technology and Healthcare Information System

Health Information Technology (HIT)
Health Information Technology, commonly called HIT, integrates advanced information systems and technology in healthcare settings. Its primary functions include:
Methods of Documentation VI: Case Management Model01:15

Methods of Documentation VI: Case Management Model

The case management model is a multidisciplinary approach that involves healthcare professionals from diverse disciplines, such as physicians, nurses, therapists, social workers, and pharmacists, working collaboratively to address the various needs of patients. Each healthcare professional brings unique expertise and perspectives, contributing to a more comprehensive understanding of the patient's condition and tailoring treatment plans accordingly.
For example, a patient with a chronic illness...
Hospitals-I01:28

Hospitals-I

Hospitals offer medical and surgical care to the sick and injured, along with accommodation while they recover. At the same time, they also provide outpatient, emergency, psychiatric, and rehabilitation services to meet various community needs. In addition to providing medical care, hospitals also act as hubs for medical research and training. Hospitals use clinical procedures and evidence-based practice standards to deliver patient care. To deliver safe and efficient care, a nurse must stay up...
Issues And Trends In Healthcare Delivery System01:29

Issues And Trends In Healthcare Delivery System

The issues and trends in healthcare delivery are constantly changing. The COVID-19 pandemic is one recent issue that wreaked havoc on healthcare systems, causing a shortage of healthcare workers, high demand for medicines and supplies, and increased medical expenditure due to a lack of insurance. Other issues include rising healthcare costs and care fragmentation.
Cost Containment
Payment for healthcare services has historically promoted adoption of costly and often unnecessary or inefficient...
Standards of Care I01:22

Standards of Care I

Federal statutes profoundly impact nursing practice, providing critical guidelines to ensure patient care is equitable, accessible, and of the highest quality. The following laws address distinct aspects of healthcare provision and patient rights:

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Related Experiment Video

Updated: Jun 26, 2026

Improving IV Insulin Administration in a Community Hospital
12:08

Improving IV Insulin Administration in a Community Hospital

Published on: June 11, 2012

Managed care's price bargaining with hospitals.

Vivian Y Wu1

  • 1University of Southern California and RAND Corporation, Los Angeles, CA 90089, United States. vivianwu@usc.edu

Journal of Health Economics
|December 26, 2008
PubMed
Summary

Managed care plans achieved lower health care spending by negotiating lower hospital prices. Their bargaining power stemmed from large member enrollment and effective patient channeling, which secured volume discounts.

Area of Science:

  • Health economics
  • Healthcare management
  • Health services research

Background:

  • Managed care (MC) influenced healthcare spending in the 1990s by reducing unit prices.
  • The specific mechanisms of MC's price negotiation power remain understudied.

Purpose of the Study:

  • To investigate the sources of managed care's bargaining power in negotiating hospital prices.
  • To analyze the relationship between plan characteristics and price discounts.

Main Methods:

  • Utilized a unique panel dataset of actual hospital prices in Massachusetts.
  • Analyzed data from the period between 1994 and 2000.

Main Results:

  • Identified two key determinants of price discounts: plan membership size and patient channeling success.

Related Experiment Videos

Last Updated: Jun 26, 2026

Improving IV Insulin Administration in a Community Hospital
12:08

Improving IV Insulin Administration in a Community Hospital

Published on: June 11, 2012

  • Larger plan memberships enabled volume discounts across hospitals.
  • Effective patient channeling allowed health plans to negotiate greater discounts, augmenting volume discounts.
  • Conclusions:

    • Managed care organizations leverage plan size and patient channeling to achieve significant price concessions from hospitals.
    • These strategies are crucial for understanding how managed care impacts healthcare costs.