What is a primary characteristic of contracted rates with Managed Care Organizations (MCOs)?

The primary characteristic of contracted rates with Managed Care Organizations (MCOs) is that physicians provide services at a discount in return for patient access. This arrangement is fundamental to how MCOs operate and is designed to manage healthcare costs while ensuring that patients have access to necessary medical services.

When physicians agree to contract with an MCO, they typically accept lower reimbursement rates for their services in exchange for a steady stream of patients. This model benefits both the MCO and the healthcare providers, as MCOs can offer lower premiums to patients due to the negotiated rates, and providers gain access to a larger patient base. The discounting of services is not just a financial strategy, but it's also the mechanism through which MCOs aim to control healthcare expenditures and promote efficiency in service delivery.

This characteristic also underscores the collaborative relationship between MCOs and physicians where patient care is coordinated, and costs are shared in a manner that ideally leads to healthier patient outcomes and reduced overall expenditures.