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Managed Care Organizations are groups of health care providers who aim at providing health services to consumers at low costs through the use of insurance covers (Hansen-Turton et al., 2013). They also ensure that the quality of health services and products offered to consumers is high and less harmful to them. Information Technology is a significant component of Managed Care Organizations. Information systems help the efficient and effective running of these healthcare organizations through a variety of functions (Kongstvedt, 2013). Without the use of Information Systems, the running of Managed Care Organizations would not be effective, and the healthcare services provided would be of lower quality. There are a variety of elements which make the information system effective in running Managed Care Organizations. The Health Insurance Portability and Accountability Act has set several requirements that Electronic Health Record programs should comply to. There are also weaknesses and strengths of both outsourcing and insourcing Information Technology needs.

Managed Care Organizations require some aspects of Information Systems, which they use. These Information Technology elements include Electronic Medical Records, Telehealth, Telemedicine, Personal health records, E-prescribing, and computerized provider order entry (Kongstvedt, 2013). Electronic Medical Record is a digital system which involves the keeping of all the information of patients. The information includes personal information, the medical history, the medications which have been prescribed to the patient, and the various payment methods and amounts that have been accrued for the delivery of the health care services. These Electronic Medical Records can be used in any health care facility through a specific software that has been developed for that purpose (Wager, Lee, and Glaser, 2017). Therefore, this means that Managed Care Organizations significantly require this system for keeping the information of patients in digital systems rather than using paper records. Telehealth is another element which involves the use of telecommunication technologies to deliver health-related services, as well as the education of health issues to the public through distance means (Wager, Lee, and Glaser, 2017). This may include using the internet and other video related systems and streaming to reach a wide range of people over a large geographical area. Telemedicine is closely related to telehealth in that; telemedicine aims at the provision of remote clinical services. However, telehealth is broader than telemedicine because, in addition to the provision of remote clinical services, it also provides administration meetings and health education remotely (Borycki et al., 2011).

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Key elements of an information system for an MCO

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