This paper explores the idea of accountability in the managed care are
na and the need for employers to demand accountability if they are to
establish themselves as customers. Four key principles for establishin
g greater accountability are outlined: addressing health care issues a
t the local level; focusing on quality of health care as well as cost;
collecting data on quality; and creating an accountable health carl s
ystem through value-based purchasing. A review of methods for establis
hing accountability when negotiating contracts with managed care organ
izations (MCOs) focuses on the significance of collecting and understa
nding claims data, defining performance standards, and establishing an
d using MCO incentives.