Managed Competition

Managed competition is a relatively new organizational paradigm for the provision of medical services that tries to capture the benefits, while avoiding the limitations, of both competitive and cooperative models. To best understand this concept, five main topics will be addressed. They include (1) defining managed competition, (2) contextualizing managed competition in the health services industry, (3) origins of managed competition, (4) advantages of managed competition, and (5) disadvantages of managed competition.

Defining Managed Competition

Managed competition is a marketing and management strategy used to obtain maximum value for consumers and employers. It relies on competitive rules that were established through macroanalysis of interactions among consumers/employees, employers, health service providers, and public and private funding agencies.

The sponsor of a managed competition scheme develops a planned system that ...

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