This proved to be cost-effective. The managed care company organizes doctors into cost-conscious groups. Since the 1980s, more and more employee benefit programs have contracted with managed care companies. There are now hundreds of managed care companies. Their rules differ.
Contracts change from year to year.
Managed Care Means Controlling Health Care Costs. Managed Care Discourages Unnecessary Hospitalization. Managed Care Discourages the Overuse of Specialists. Managed Care Services Depend on the Contract. States are now looking to the managed care industry to provide public health care, including mental health and related services.