Final answer:
The described scenario demonstrates a managed care system, in which healthcare costs are managed through a preapproved procedure process for Aunt Sally, and is characterized by a fixed payment to providers, rather than payments for each service.
Step-by-step explanation:
The scenario described involves Aunt Sally being admitted to the hospital for a preapproved procedure after several visits to her primary care physician. This demonstrates a managed care system, where the healthcare provider is incentivized to reduce costs by managing the number of services provided. Such systems, like Health Maintenance Organizations (HMOs), involve a fixed payment per patient rather than additional payments for each service (“fee-for-service” system).
In a managed care system, providers are motivated to ensure that patients receive necessary, efficient care without unnecessary procedures. The preapproval process for hospital stays and procedures also serves as a mechanism to control costs. This is distinct from a fee-for-service system, where providers may be incentivized to offer more services to increase their earnings.