Certified Professional in Health Care Risk Management (CPHRM) Practice Exam 2025 - Free CPHRM Practice Questions and Study Guide

Managed care is best understood as a system that integrates health care delivery and financing with provider arrangements. This model aims to control costs while improving the quality of care. Managed care organizations structure their services around a network of providers, which helps to coordinate patient care and encourages the use of preventative services. By negotiating rates and focusing on efficiency, managed care can reduce unnecessary expenditures and streamline the overall health care process.

In contrast, the other options do not accurately describe the comprehensive nature of managed care. Providing only emergency-care services, as suggested in one choice, does not encompass the broader objectives of managed care, which includes ongoing medical treatment and preventative strategies. Preventative care coverage alone, while crucial, is just one aspect of the managed care approach and does not capture the integration of delivery and financing. The concept of a free market approach to healthcare services implies unregulated competition without the structured provider relationships found in managed care, which could lead to less coordinated care and higher costs. Thus, the emphasis on integration and provider arrangements in managed care is what makes it fundamentally distinct and effective in managing health care costs and quality.