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Payment System of DRGs and managed care and spending

How do the Prospective Payment System of DRGs and managed care attempt to reduce overspending? Have these systems succeeded?

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The notion of managed care came about in attempts to reduce health care costs. In a country that is reluctant to move toward socialized medicine, to fight hard in preserving the free-choice mentality of other American luxuries, the broadbrushed concept has become inequitable. While it may save money in many instances, the lack of choices has long been one of the troubles with this system, while reining in the costs and benefits of health care delivery.

While some Health Maintenance Organization (HMOs) may actually care about the patient's well being and work hard to offer a quality service, generally, there are too many layer of administration often to offer a straightforward and quality evaluation of this type of health service over all. The opinions on the said managed care range from too busy to talk to patients and all the way to dropping service in a cold-hearted fashion, simply because the funding is unavailable. There is a stark contrast to the day of the doctor coming to the home with his black bag, where now employees have to select care providers that may not be close to them or their personal ...

Solution Summary

The notion of managed care came about in attempts to reduce health care costs. In a country that is reluctant to move toward socialized medicine, to fight hard in preserving the free-choice mentality of other American luxuries, the broadbrushed concept has become inequitable. While it may save money in many instances, the lack of choices has long been one of the troubles with this system, while reining in the costs and benefits of health care delivery.

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