Final answer:
Managed care organizations require healthcare practices to adhere to cost-control regulations set by the ACA, such as caps on administrative spending and conversion to electronic medical records (EMRs). They also change the reimbursement model to focus on patient numbers rather than services, which can lead to more efficient resource distribution but also carries the risk of adverse selection.
Step-by-step explanation:
Managed care organizations (MCOs) impact a practice's administrative procedures by requiring a series of regulations designed to control healthcare costs. The Affordable Care Act (ACA) introduced measures such as a cap on the amount healthcare providers can spend on administrative costs and the mandate to switch to electronic medical records (EMRs). This shift to EMRs is expected to reduce administrative costs and improve overall efficiency within healthcare practices.
In addition to changing how records are managed, MCOs alter the payment model from a fee-for-service system to one that can also involve health maintenance organizations (HMOs), where providers are reimbursed based on the number of patients rather than services provided. This approach can lead to a more resource-efficient distribution among patients but also carries the risk of adverse selection in insurance markets, where insurers may end up covering more high-risk individuals than low-risk ones.