Significant Event/Impact on Health Care Organizations: Managed Care

1289 words 6 pages
Running Header: SIGNIFICANT EVENT/IMPACT ON HEALTH CARE ORGANIZATIONS: MANAGED CARE

Significant Historical Event/Impact on Health Care Organizations: Managed Care
Erich Hayman
Monday, May 19, 2008
University of Phoenix
HCS/530, Health Care Organizations
Professor David A. Olsen, MHA Significant Historical Event/Impact on Health Care Organizations “By 1995, managed care plans had become the dominant form of health insurance and enrolled 73 percent of all Americans who were covered by employer-based health benefits (Jenson, Morrisey, Gaffney, and Liston, 1997)” (Mick & Wyttenbach, 2003, p.6). “In comparing the development of the U.S., British, and Canadian health systems, Carolyn Tuohy (1999: 7) argues that “key
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Liberals, lead by Senator Edwards Kennedy, and organized labor forces demanded a national healthcare plan. “While the health maintenance strategy gained conservative support because of the business mentality it brought to social welfare programs and its potential for cost containment, it gained liberal support because of the comprehensive benefits and continuity of care it offered to patients” (Oliver, 2004). The HMO Act of 1973 was established to expand the competitive landscape, but the system was hindered by legislation, regulation, and the Tax Equity and Financial Responsibility Act of 1982, “which belatedly expanded the market competition paradigm to Medicare” (Oliver, 2004). From this point legislation made strong efforts to overcome the backlash of initial manage care efforts, but all policy including; the Jackson Hole Group and the Consumer Choice Health Plan, 21st Century American Health Care System papers, and Clintons Health Security Plan, failed to mitigate the political landscape and grant healthcare as a right. “As the opportunity for a national health insurance program closed, managed care and managed competition gained new life in a wide variety of public and private sector initiatives” (Oliver, 2004). Managed care as a national healthcare system had overcame initial impediments through the consequential failure of litigation. “In common

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