Final answer:
Utilization control methods in health care include capping administrative costs, adopting electronic medical records, and shifting toward health maintenance organizations (HMOs) to improve care efficiency and reduce costs.
Step-by-step explanation:
There are several utilization control methods used to monitor and control how health care services are used, which include various approaches introduced by the Affordable Care Act (ACA). One effective method is imposing a cap on administrative costs, preventing healthcare providers from overspending on non-medical expenses. Another strategy involves encouraging the transition to electronic medical records (EMRs), which are anticipated to streamline administrative processes and reduce associated costs.
Additionally, the shift from a fee-for-service model to health maintenance organizations (HMOs) emphasizes the provision of care for a fixed amount per person enrolled. This method helps to align incentives for providers to manage the care efficiently while avoiding the over-provision of unnecessary services. Managed care approaches often combine fee-for-service with a flat rate payment system to incentivize appropriate levels of care, focusing on reducing the phenomenon known as moral hazard by limiting services to those that are necessary for patient health.