$24$

$5$ points

How did managed care come about?

Entrepreneurs, who saw the potential for reducing medical system inefficiencies, started HMOs and marketed them to employers.

Nonprofit hospitals, concerned about reduced hospital utilization and excess hospital capacity, saw HMOs as a way of increasing their revenue.

Consumer organizations developed nonprofit managed care organizations to lower the rapid rise in medical expenditures.

State governments provided incentives for hospitals and physicians to form managed care organizations.