Capitation adjustments for physician risk

Based on available data from the Health Insurance Association of America and the Group Health Association of America, about 9% of all primary care physician-based compensation was through capitation in 1990. By the turn of the century, more than 20% of such payment will be in the form of capitation. The author discusses how capitated arrangements can be negotiated so that the fairest rates result. Also described is the importance of developing practice pattern guidelines to ensure that capitation payment does not adversely affect patient quality of care.