DRGs are briefly emphasized.

How do the Prospective Payment System of DRGs and managed care attempt to reduce overspending? Have these systems succeeded?

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...oice and it is simply because the employer gave them only one or two choices. This phenomena that started in the 1990s actually hurt a lot of patients and eventually legislation passed in 1997 that curtailed abuse of managed care. Patients were dying and were left with no options, once they bought into the system. The programs made a lot of money at the expense of the patient. They have learned a lot in the last few decades and are still able to make and save money while not hurting the morale and health of the patient along the way.

The systems that have worked to hone down the challenges and have developed streamlined bureaucracies and processes have managed to cut costs under managed care. As long as patients are not neglected simply because their health issue is chronic and requires much care then the system can have a better reputation. The program that does not deny or delay a decision will end up saving money, especially in law suits, where a person lost dearly as a result of an administrator not acting in a timely fashion.

While Diagnostic Related Groups (DRGs) helped make ailments to be ...