What does the term 'managed care' primarily focus on?

The term 'managed care' primarily focuses on reducing health care costs and improving efficiency. This approach encompasses a variety of strategies designed to manage costs while maintaining or improving the quality of care provided to patients. Managed care organizations typically negotiate rates with healthcare providers, emphasize preventive care, and implement protocols and guidelines to ensure appropriate use of healthcare resources.

These organizations aim to streamline healthcare services, coordinating care to avoid unnecessary treatments or hospitalizations, which ultimately leads to cost savings for both payers and patients. By focusing on preventive measures and efficient care delivery, managed care seeks to improve health outcomes while controlling expenditures, making it a foundational concept in the U.S. healthcare system.