what is an mco

A Managed Care Organization (MCO) is a type of healthcare delivery system that coordinates and manages healthcare services for its members. It is a health care company or a health plan that utilizes managed care as its model to limit costs while keeping the quality of care high. An MCO is a group of doctors, hospitals, and other providers who work together to meet the health care needs of its members. After joining an MCO, members receive health care from doctors, hospitals, and other providers in the plan they choose. MCOs offer covered health services to their members and agree to offer their services at a reduced cost as part of a managed care system. There are four types of managed care organizations or plans: Health Maintenance Organization (HMO), Preferred Provider Organization (PPO), Point of Service (POS), and Exclusive Provider Organization (EPO) . The most characteristic form of managed care is the use of a panel or network of healthcare providers to provide care to enrollees.