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    Definition of managed care

    Dictionary of Business Terms: managed care
    managed care

    health care program established by employers with a group of medical professionals and hospitals agreeing to discount rates in return for exclusive treatment rights for their employees. Properly managed, these networks can be extremely cost-effective.

    Dictionary of Insurance Terms: managed care
    managed care

    plan to control employer's health care cost through the introduction of practice guidelines or protocols for health care providers, and to improve the methods used by employers and employees to select health care providers. The goal of the plan is to create a financial accounting system in order to manage the impact of medical treatment on the patient's clinical response and quality of life. Once such a system is created, the employer and the employee will be better able to judge which health provider is more effective and efficient.

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