How do managed care organizations (MCOs) operate?

Managed care organizations (MCOs) primarily operate by controlling costs and coordinating service use, making this the correct answer. MCOs are designed to manage the delivery of healthcare services while emphasizing efficiency and cost-effectiveness. They achieve this through various strategies, such as negotiating rates with healthcare providers, implementing preventative care programs, and incentivizing members to use in-network providers. In doing so, MCOs aim to provide comprehensive care while minimizing unnecessary expenses, which ultimately helps to keep healthcare costs manageable for both the organization and its members.

The focus on coordinating service use means that MCOs work to ensure that patients receive appropriate and timely care while avoiding duplication of services. This approach can lead to better health outcomes and patient satisfaction, as well as cost savings for the organization and its members.

Other options refer to aspects of healthcare that do not align with the overall mission and operational model of MCOs. Limiting insurance coverage to specific conditions, for instance, does not represent the broad approach that MCOs take in terms of comprehensive care. Solely focusing on emergency care services ignores the preventive and primary care components that are crucial to MCO operation. Finally, the concept of providing independent care without networks contradicts the very nature of managed care,