How does managed care affect the economics of health care delivery?

Question

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Under a managed care system,care is paid for at a prearranged rate,rather that at the billed rate.This was the start of efforts to reduce health care costs.Managed care does not increase the community tax base because the costs are paid by the patients and their insurance.Managed care is more of an incentive for larger hospitals and corporations.The focus is to reduce duplication of services and not to use corporate economics to achieve a profit.

How Does Managed Care Affect the Economics of Health Care