Managed care refers to health care system in which all necessary services for an individual patient are supposed to be coordinated by a primary care provider. The goals of which are to coordinate services for an existing medical problem and to prevent future medical problems before they arise.

Managed refers to a health care arrangement in which an employer or employee pays a predetermined monthly fee to a health care or insurance agency that entitles the employee to use medical services at no additional or a reduced cost. Managed care includes HMOs, PPOs and other organizations that are designed to help contain health care costs and provide evidence of accountability from providers. Managed care also refers to profit-driven, corporate approach to health, including mental health care that attempts to contain costs by controlling the length and frequency of service utilization, restricting the types of service provided and requiring documentation of treatment necessity and efficacy.

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