Abstract
Abstract HMOs appeared in the 1970s in a context of increasing health‐care expenditure. These organizations now provide care to an increasing share of the general population, offering cost/effectiveness studies and sophisticated cost‐control mechanisms directed at care providers and patients. The following article reviews the history of Managed Care organizations, details the service they offer, discusses the current difficulties that have forced them to withdraw from some market segments and considers what prompted the government to intervene to protect patients' interests. The paper also describes the growing hostility of patients and physicians to Managed Care. Copyright © 2007 John Wiley & Sons, Ltd.
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