Capitation and Risk Management

1st Paragraph from Document: The compelling feature of managed care to entitlement-weary policy-makers and budget makers is the ability to capitate their funding obligation, shifting some or all of the risk for expenditures over and above the cap to managed care organizations. The risk may be shared by providers and consumers. There are a number of different schemes designed 1)to share the risk and 2) and to keep it at a reasonable (productive) level.

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