What effect does a closed panel or closed network have on the quality of services? 

When a managed care plan has a closed network or panel, they are not accepting additional providers into their network. This increases the referrals to existing providers on the network, but it also creates problems for subscribers.

More providers on a panel usually means a broader range of experience and specialties, which increases quality of care. Less providers on a panel can lead to longer waiting time to schedule appointments, having to travel a greater distance for appointments, and less options for change if you are dissatisfied with a provider.

Also, a closed panel reduces the chances of continuing with the same provider if your company changes plans. If your provider is not on the new panel, a closed panel will not allow him or her to join, so you will be forced to change treatment or discontinue reimbursement for treatment. In general, it is advantageous to subscribers if a managed care plan maintains an open panel, and readily accepts additional qualified providers.