managed care

A relatively new term coined originally to refer to the prepaid health care sector, (e.g., HMO's and CMP's). In general, the term refers to a means of providing health care services within a defined network of health care providers who are given the responsibility to manage and provide quality, cost-effective health care. Increasingly, the term is being used by many analysts to include PPO's and even forms of indemnity insurance coverage that incorporate preadmission certification and other utilization controls.