Managed Care

Capitation: an update

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Those not-so-long-ago predictions that global capitation would come to define the financing of American medicine haven't come to pass. In fact, the use of capitation has, more or less, hit a plateau in the past couple of years. Meanwhile, a capitation-rate analysis suggests that physicians who accept capitation contracts are able to negotiate higher rates when risk pools are smaller — though some physicians will argue the rates themselves aren't commensurate with their own risk.

SOURCE: BECTON DICKINSON REPORT ON PHYSICIANS IN MANAGED CARE 1999

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