Topic > Network Development in the Managed Care Organization

Network Development in the Managed Care Organization To ensure that its members receive appropriate, high-level, cost-effective care, each managed care organization (MCO) customizes its networks based on the characteristics of suppliers, consumers and competitors in a specific market. Other considerations for creating the network include the managed care organization's own goals for quality, accessibility, cost savings, and member satisfaction. Strategic network planning is an ongoing process. In addition to an initial assessment of its markets and objectives, the managed care organization must periodically reevaluate its target markets and objectives. After examining the markets, the organization must adjust its network strategies accordingly to remain competitive in the rapidly evolving healthcare industry. Coventry Health Care, Inc and its affiliated companies recognize the importance of developing and maintaining an adequate network of qualified providers to meet the needs of customers and enrolled members (Coventry Health Care Intranet, Creasy and Spath, http://cvtynet /). “A central goal of managed care is to contain the costs of providing care, but the wide variety of organizations typically grouped under the managed care umbrella pursue this goal using a combination of numerous strategies that vary from market to market and from organization to organization" (Baker, 2000, p.2).