Date of Award


Document Type


Degree Name

Masters of Science on Corporate Communications



First Advisor

Betty LeMasters

Second Advisor

Thomas Dehner

Third Advisor

Michael Krammer


This paper studies the role of health maintenance organizations in the health care market. Managed Care represents the growing wave of health care in the future by eliminating unnecessary and costly procedures. Vanishing are the repetitive tests that once victimized the consumer. By regulating fixed costs, the industry is forcing a change in testing and research.

Since Managed Care regulates costs, they appear particularly prominent in the elderly population. Financial efficiency helps provide the proper organized system of long term care brought by the aged. Also, complex paper work and bills should be eliminated or at least decreased to a great extent, and comprehensive coverage added to the growing population of aged or retired persons.

The cost effectiveness of Managed Care has helped to bear arms in the fight against rising health care costs. Discounted contractual rates attained by virtue of agreements with providers is one step taken in this direction. By assessing fixed figures for specialized services, providers are left with little alternative but to reduce costs to avert large write-offs. Many sources such as economic, political and social sources encourage the growth of prepayment in order to contain costs.

Consumers can benefit by referral to providers that specialize in the care they are seeking. In addition, the consumers financial liability is reduced by having to pay percentages of discounted rates, or in some cases have care provided for them at no cost.

Thus, prepayment plans which are initiated by some Managed Care plans can be cost efficient for the entire community. Not only do consumers benefit but doctors and hospitals also prosper. Doctors are granted fixed rates and attract additional patients by merely being a certain company's approved provider. In the authors view, if the medical staff of a hospital works with a managed care plan on the same "team," a hospital would probably keep beds filled and remain competitive with other hospitals in the market. Ultimately, it is very important that HMOs and hospitals work together to ensure a smooth working network. Sacrifices are made but overall benefits may be realized by all participating parties.

Creative Commons License

Creative Commons Attribution-NonCommercial 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

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