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Table of Contents

PART I - INTRODUCTION TO MANAGED CARE

CHAPTER 1 - AN OVERVIEW OF MANAGED CARE
Peter D. Fox

Study Objectives
Introduction
Managed Care: The Early Years (Pre-1970)
The Adolescent Years: 1970-1985
Managed Care Comes of Age: 1985 to the Present
Future Issues Facing Managed Care
Conclusion
Study Questions

CHAPTER 2 - TYPES OF MANAGED CARE ORGANIZATIONS
Eric R. Wagner

Study Objectives
Types of MCOs
HMO Models
Conclusion
Study Questions

CHAPTER 3 - INTEGRATED HEALTH CARE DELIVERY SYSTEMS
Peter R. Kongstvedt, David W. Plocher, and Jean C. Stanford

Study Objectives
Introduction
Highly Integrated Delivery Systems
Market Characteristics
Types of IDSs
IPAs
PPMCs
Consolidated Medical Groups
PHOs
MSOs
Foundations
Staff Model
Physician Ownership Model
PSOs
Virtual Integration
Global Capitation
Acquisition of Physician Practices
Legal Pitfalls for IDSs
Critical Success Factors for IDSs
Conclusion
Study Questions

CHAPTER 4 - ELEMENTS OF THE MANAGEMENT CONTROL AND GOVERNANCE STRUCTURE
Peter R. Kongstvedt

Study Objectives
Board of Directors
Key Management Positions
Committees
Management Control Structure
Conclusion
Study Questions

CHAPTER 5 - EXAMINING COMMON ASSERTIONS ABOUT MANAGED CARE
Richard I. Smith, Daniel Thornton, and Terry Sollom

Study Objectives
Introduction
Managed Care Myths
Conclusion
Study Questions

PART II - THE HEALTH CARE DELIVERY SYSTEM

CHAPTER 6 - PRIMARY CARE IN MANAGED HEALTH CARE PLANS
Peter R. Kongstvedt

Study Objectives
Introduction and Definitions
Recruiting
Nonphysician or Midlevel Practitioners
Types of Contracting Situations
Credentialing
The National Practitioner Data Bank
Healthcare Integrity and Protection Data Bank
Compensation
Orientation
Network Maintenance
Internet-Based Activities
Removing Physicians from the Network
Conclusion
Study Questions

CHAPTER 7 - COMPENSATION OF PRIMARY CARE PHYSICIANS IN MANAGED HEALTH CARE
Peter R. Kongstvedt

Study Objectives
Introduction
Basic Models of Reimbursement
Capitation
Withholds and Risk/Bonus Arrangements
Capitation Pools for Referral and Institutional Services
Full Professional Risk Capitation
Reasons To Capitate
Problems with Capitation Systems
Effect of Benefits Design on Reimbursement
Fee for Service
A Special Requirement for Reimbursement When Coinsurance Is in Place
Out-of-Network Fees
Discounts, Negotiated Fee Schedules, Fee Maximums, or Fee Allowances
Relative Value Scales
Global Fees
Problems with FFS in Managed Health Care Plans
Legislation and Regulation Applicable to Physician Incentive Programs
Civil Liability in Physician Compensation Programs
Conclusion
Study Questions

CHAPTER 8 - CONTRACTING AND REIMBURSEMENT OF SPECIALTY PHYSICIANS
Peter R. Kongstvedt

Study Objectives
Introduction
How Many Specialty Care Physicians?
Primary versus Specialty Care Designation
Credentialing
Types of Reimbursement Arrangements
Organizational Models for Capitating Specialty Services
Common Problems with Specialty Capitation
Other Forms of Specialty Physician Reimbursement
Risk and Reward
Conclusion
Study Questions

CHAPTER 9 - NEGOTIATING AND CONTRACTING WITH HOSPITALS, INSTITUTIONS, AND ANCILLARY SERVICES
Peter R. Kongstvedt

Study Objectives
Introduction
Hospital Network Development
Types of Reimbursement Arrangements
Outpatient Procedures
Ancillary Services
Conclusion
Study Questions

PART III - MEDICAL MANAGEMENT

CHAPTER 10 - CARE MANAGEMENT AND CLINICAL INTEGRATION COMPONENTS
David W. Plocher, Wendy L. Wilson, Jacqueline A. Lutz, and Ann Huston

Study Objectives
The Context for Advanced
Defining Advanced
Integrating the Components
The Role of Physicians
Building an Advanced Care Management System: A Typical Process
Defining the Future State of Care Management
Conclusion
Study Questions
Appendix 10-A - Description of the Components of the Advanced Care
Management System

CHAPTER 11 - MANAGING BASIC MEDICAL-SURGICAL UTILIZATION
Peter R. Kongstvedt

Study Objectives
Introduction
Return on Investment in Management of Medical Costs
Demand Management
Measurements of Utilization
Variations in Utilization
The Role of Electronic Commerce
Authorization or Denial of Payment for Services
Managing Utilization of Specialty Services
The Role of the Primary Care Physician in Specialty Services
Management
Single Visit Authorizations Only
Specialty Physicians As Primary Physicians
Prohibition of Secondary Referrals and Authorizations
Review of Reasons for Referral
Institutional Utilization Management
Common Methods for Managing Utilization
Alternatives to Acute Care Hospitalization
Case Management
Conclusion
Study Questions

CHAPTER 12 - CLINICAL SERVICES REQUIRING AUTHORIZATION
Peter R. Kongstvedt

Study Objectives
Definition of Services Requiring Authorization
Definition of Who Can Authorize Services
Claims Payment
Categories of Authorization
Staffing
Common Data Elements
Methods of Data Capture and Authorization Issuance
Authorization System Reports
Open Access HMOs
Specialty-Physician Based Authorization Systems
Non-Physician-Based Authorization Systems
Conclusion
Study Questions

CHAPTER 13 - CASE MANAGEMENT AND MANAGED CARE
Catherine M. Mullahy

Study Objectives
The Case Manager's Role
Patient Profile: Not Every Case Needs a Case Manager
On-Site versus Telephone-Based Case Management
Case Managers in Managed Care
Case Management Work Format and Process
Utilization Review: Preadmission and Concurrent Review and Case Management
Preadmission and Concurrent Review Case Management Reports
Red Flags: Indicators for Case Management
Timing Case Management Intervention
Beyond the Case Management Basics
A Long-Term Solution to a Long-Term Problem
Study Questions

CHAPTER 14 - FUNDAMENTALS AND CORE COMPETENCIES OF DISEASE MANAGEMENT
David W. Plocher


Study Objectives
Definition and Clarification
Barriers and Drivers for Disease Management
Business Plan
Survey of Disease Management Programs
Important Linkages
Support from Electronic Commerce
Conclusion
Study Questions

CHAPTER 15 - PRESCRIPTION DRUG BENEFITS IN MANAGED CARE
Robert P Navarro


Study Objectives
Financial Basis for Pharmacy Benefit Management
Pharmacy Program Cost Components
Principles of Pharmacy Benefit Management
Managing the Supply and Demand
Pharmacy Information Systems and Health Informatics
Pharmacy Benefit Management Companies (PBMs)
Pharmacy Benefit Management Program Components
Physician Provider Network
Pharmacy Provider Network
Pharmacy Provider Audits
Drug Formulary Management
Pharmaceutical Manufacturer Discount and Rebate Contracts
Prescription Patient Copayments
Role of Pharmacy Programs in Disease Management and Quality Improvement
Programs
Quality Improvement in Pharmacy Benefit Management
Measuring Pharmacy Benefit Management Program Performance
Future Changes in Pharmacy Benefit Management
Conclusion
Study Questions

CHAPTER 16 - MANAGED BEHAVIORAL HEALTH CARE AND CHEMICAL DEPENDENCY SERVICES
Donald F Anderson, Jeffrey L Berlant, Katherine O Sternbach, Danna Mauch,
HG Whittington, William R Maloney, and Terri Goens


Study Objectives
Introduction
Historical Perspective
Key Treatment Principles
Benefit Plan Design
Utilization Management
Channeling Mechanisms
Provider Structures for Integrated Delivery Systems To Meet Managed Care Objectives
Quality Assurance
BH Information Systems
Public/Private Systems Integration
Emerging Issues
Conclusion
Study Questions

CHAPTER 17 - QUALITY MANAGEMENT IN MANAGED CARE
Pamela B Siren

Study Objectives
Introduction
Traditional Quality Assurance
Components of a Quality Management Program
A Process Model for a Modern Quality Management Program
Conclusion
Study Questions

CHAPTER 18 - USING DATA AND PROVIDER PROFILING IN MEDICAL MANAGEMENT
Peter R Kongstvedt, Norbert I Goldfield, and David W Plocher

Study Objectives
Introduction
Use of Data and Information in Medical Management
Patient Data Confidentiality
Data Elements and the Application of Reports
General Types of Reports
Provider Profiling
Desired Characteristics of Provider Profiles
The Need To Adjust for Severity of Illness
Selection of a Profiling Vendor
The Future of Data Use
Conclusion
Study Questions

CHAPTER 19 - PHYSICIAN BEHAVIOR CHANGE IN MANAGED HEALTH CARE
Peter R Kongstvedt

Study Objectives
Introduction
General Aspects of Physician Practice Behavior
General Approaches to Changing Behavior
Programmatic Approaches to Changing Physician Behavior
Addressing Noncompliance by Individual Physicians
Conclusion
Study Questions

PART IV - OPERATIONAL MARKETING AND MANAGEMENT

CHAPTER 20 - INFORMATION SYSTEMS IN MANAGED HEALTH CARE PLANS
James S Slubowski

Study Objectives
Introduction
Core Managed Care Information System
Electronic Data Interchange
Privacy and Confidentiality under HIPAA
Value-Added Services - The Next Generation
HEDIS
Information Services Department
Conclusion
Study Questions

CHAPTER 21 - CLAIMS AND BENEFITS ADMINISTRATION
Robin L McElfatrick and Robert S Eichler

Study Objectives
Introduction
Claims: Positioning, Purpose, and Opportunities
Organizational Structure and Staffing
Claims Operations Management
Productivity
Turn Around Time
Staff Training and Development
Quality
Policy and Procedure
Coordination with Other Departments/Functions
Systems Support
Claims Business Functions
Other Issues
Conclusion
Study Questions

CHAPTER 22 - MEMBER SERVICES AND CONSUMER AFFAIRS
Peter R Kongstvedt

Study Objectives
Provision of General Information
Conclusion
Study Questions

CHAPTER 23 - SALES AND MARKETING IN MANAGED HEALTH CARE PLANS: THE PROCESS OF DISTRIBUTION
Gail Marcus and John C Thomson

Study Objectives
What Managed Care Organizations Deliver
Challenges Facing MCOs
An Overview of the Managed Care Market
Key Decision Makers and Influencers in the Managed Care Distribution Process
The Managed Care Sales Process
How the Managed Care Team Delivers
The Management of Sales and Marketing Professionals
Conclusion
Study Questions

CHAPTER 24 - THE EMPLOYER'S VIEW OF MANAGED HEALTH CARE: SHOW ME THE VALUE
Michael J Taylor

Study Objectives
Recent Managed Care Trends Affecting Employers
How These Trends Impact Employers Both Large and Small
The Large Group Employer: 5,000 Lives Plus
The Moderate Group Employer: 500-5,000 Lives
The Medium Group Employer: 50-500 Lives
The Small Group Employer: 0-50 Lives
How Employers Purchase V8-1998)
Looking for Value: 2000 and Beyond
Future Trends
Conclusion
Study Questions

CHAPTER 25 - THE IMPACT OF CONSUMERISM ON MANAGED HEALTH CARE
Jacqueline A Lutz and Hindy J Shaman

Study Objectives
Why Is Consumerism a Significant Trend?
Who Is the New Health Care Consumer?
What Are the Implications of Consumerism?
How Can Organizations Develop a Consumer Strategy?
What Consumerism Means for the Managed Care Industry
Conclusion
Study Questions

CHAPTER 26 - ACCREDITATION AND PERFORMANCE MEASUREMENT PROGRAMS FOR MANAGED CARE ORGANIZATIONS
Margaret E O'Kane

Study Objectives
Introduction
Oversight by Type of Organization
National Committee for Quality Assurance
The Utilization Review Accreditation Commission
Joint Commission on Accreditation of Healthcare Organizations
Conclusion
Study Questions

CHAPTER 27 - COMMON OPERATIONAL PROBLEMS IN MANAGED HEALTH CARE PLANS
Peter R Kongstvedt

Study Objectives
Introduction and Background
Common versus Unique Problems or Events
Common Problems in Managed Care Organizations
Conclusion
Study Questions

CHAPTER 28 - OPERATIONAL FINANCE AND BUDGETING
Dale F Harding

Study Objectives
Background
Financial Statement Components
Balance Sheet
Regulatory Reporting Considerations
Budgeting and Financial Forecasting
Conclusion
Study Questions

CHAPTER 29 - UNDERWRITING AND RATING FUNCTIONS COMMON TO MOST MARKETS
Stephen M Cigich and Michael G Sturm

Study Objectives
Underwriting
Rating
Conclusion
Study Questions

PART V - MEDICARE AND MEDICAID

CHAPTER 30 - MEDICARE AND MANAGED CARE
Carlos Zarabozo and Jean D LeMasurier

Study Objectives
Introduction
Organization of the Chapter
Who Is Eligible for a Medicare Risk Contract?
The Exception in State Licensure: Provider-Sponsored Organizations
Other New Options
Muddying the Waters: Plans versus Organizations
Federal Preemption
What the Contract Requires (Finally!)
Limitations on Physician Incentive Plans
Consumer Protections
Provider Protections and Rights: Conscience Protection
Information Dissemination
Enrollment
Marketing Rules
Interactions with Your Government
The Contracting Process
Web Resources and Other Contacts
Future Direction of the Program
Study Questions

CHAPTER 31 - MEDICAID MANAGED CARE
Robert E Hurley and Stephen A Somers

Study Objectives
Introduction
Medicaid - Origins and Evolution
Medicaid Managed Care - Background and Models
Operational Features
Successes of Medicaid Managed Care
Shortfalls of Medicaid Managed Care
The Challenging Contemporary Context
Longer Term Questions and Concerns
Conclusion
Study Questions

PART VI - REGULATORY AND LEGAL ISSUES

CHAPTER 32 - LEGAL ISSUES IN PROVIDER CONTRACTING
Mark S Joffe

Study Objectives
General Issues in Contracting
Contract Structure
Common Clauses, Provisions, and Key Factors
Conclusion
Study Questions
Appendix 32-A - Sample Physician Agreement
Appendix 32-B - Sample Hospital Agreement

CHAPTER 33 - LEGAL LIABILITY RELATED TO MEDICAL MANAGEMENT ACTIVITIES
James L Touse

Study Objectives
Obligations To Conduct Medical Management Activities
Common Law Medical Management Liability Actions
Contract Actions Related to Medical Management Activities
Negligence Actions Related to Medical Management Activities
Recommendations
Conclusion
Study Questions

CHAPTER 34 - THE HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT 6
Charles N Kahn III, Dean A Rosen, Marianne Miller, and Kathleen H Fyffe

Study Objectives
Introduction
Overview
Provisions: Portability and Access
New Access Initiatives
Amendments to HIPAA Portability and Access Provisions
Provisions: Administrative Simplification
HIPAA Administration and Enforcement
An Early Report on the Effects of HIPAA Portability and Access Provisions
Conclusion
Study Questions

CHAPTER 35 - STATE REGULATION OF MANAGED CARE
Richard I Smith and Kristin Stewart

Study Objectives
Introduction
State Oversight: The Regulatory Process
State Regulation of Other Products
Managed Care Legislation
Regulation by Market Segment
The State Experience - Conclusion
Study Questions

CHAPTER 36 - MANAGED CARE'S REGULATORY EVOLUTION: DRIVING CHANGE IN THE NEW CENTURY
Frederick B Abbey

Study Objectives
Forces Driving Federal Health Policy
Major Areas of Policy Development
Outlook
Study Questions

EPILOGUE - MANAGED HEALTH CARE AT THE MILLENNIUM
Peter R Kongstvedt

Introduction - The Rollercoaster That Never Stops
Using the Magic Eight Ball: The Answer Is Hazy - Try Again Later
They Were Right All Along - Managed Health Care Is in Chaos
Reversing Entropy with a Little Help from Professor Heisenberg - Predicting,
Leading, and Acting in a Chaotic Managed Health Care Environment
Handicapping the Field - The Stratification of Predictability
Driving the Nitroglycerine Truck on a Foggy Night - Leadership, Strategy, and
Action in the Chaotic World
Door Number One, Two, or Three - Choosing Strategic Options
Conclusion - Shake the Magic Eight Ball and Try Again

GLOSSARY OF TERMS AND ACRONYMS

INDEX

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