What is meant by "Closed Panel" in a health care arrangement?

In the context of a health care arrangement, "Closed Panel" refers to a system where a managed care plan restricts patient access to a select group of providers who have a contractual agreement with the plan. This typically means that patients are required to receive their care only from these approved providers to be eligible for the full benefits of their health plan. The aim of a closed panel system is to control costs and ensure that care provided is within the guidelines of the managed care organization.

This is in contrast to other models that allow for broader provider access. In an open access model, for instance, patients can typically seek care from any medical provider without restrictions. Similarly, in systems that promote independent contractors or allow for out-of-network specialists without penalty, patients have greater flexibility and choices regarding their healthcare team, which is not present in a closed panel arrangement.