How does managed care typically control healthcare costs?

Managed care typically controls healthcare costs by creating networks of providers who agree to provide services at reduced fees. This model incentivizes cost efficiency and provider collaboration while maintaining a focus on quality care. By working within a network, managed care organizations can negotiate lower rates with hospitals, physicians, and other healthcare providers, which helps to manage overall expenditure.

This arrangement encourages the use of in-network providers, directing patients to receive care from those who adhere to the organization's guidelines for cost and care quality. By emphasizing the importance of these networks, managed care can effectively reduce administrative costs and enhance care coordination, leading to better health outcomes at a lower overall cost.

The other options do not align with the principles of managed care; for instance, allowing unlimited access to specialists would likely increase costs rather than contain them, as would focusing only on emergency care or minimizing preventive services, which are essential for maintaining long-term health and reducing the need for more expensive treatments down the line.