Capitating multispecialty groups

This article addresses the issues a medical group must consider when entering into a capitation agreement with a managed care organization. It discusses the potential risks of capitation contracts and how those risks can be limited. In addition, keys to successful contracting are explored. Specific considerations outlined include choosing a contracting partner, determining the capitation rate and contract terms, and managing risk. Internal issues regarding the distribution of capitation income, physician incentives and risk pools, and management information systems are also addressed in the article.