Managing the transition to capitation

Although most experts believe that capitation and financial risk-sharing among providers will become key components of the U.S. healthcare system, providers may not feel the full effect of this shift for several years. In the interim, providers must operate under an activity-based payment system that rewards them for the volume of patients seen, while preparing for the transition to a fixed, per-capita payment system that will reward them for the efficiency with which services are provided. Preparation for the move to capitation will involve implementation of the systems necessary to negotiate managed care contracts, enhance quality and efficiency, and take responsibility for the health of a defined population.