It changed the rates it paid providers for these services to make it more lucrative for them to provide group therapy than individual therapy. Unsurprisingly, the pattern of care amongst providers changed as the MCO desired. The quality of care is also affected. Managed care has put financial pressures on providers, who have cut staff, employed less educated staff, and foregone staff training. The remaining staff have a higher case load, and thus have less time to spend with their patients.
Collateral contacts are infrequent and fast becoming a thing of the past.
Hurried interaction and even human rights abuses are facilitated by a system with too few staff who can take the time to listen to a client's needs and respond appropriately. Performance standards Contractual performance standards have failed to reign in the financial incentives inherent in private, for-profit, managed care. FY98 performance standards were flawed. However, recidivism rates measured readmission for the same diagnosis. Doctors admitted that diagnoses were changed to reflect lower recidivism rates.