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Managed care. The term managed care or managed healthcare is used in the United States to describe a group of activities ostensibly intended to reduce the cost of providing health care while improving the quality of that care (managed care techniques).
Managed care A prospective payment system used by Medicare and other insurers to classify illnesses according to diagnosis and treatment; DRGs are used to group all charges for hospital inpatient services into a single 'bundle' for payment purposes. See DRGs.