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Related Experiment Videos

PHOs and risk: aligning incentives with internal subcapitation.

A J Sussman1, D G Fairchild, T A Brennan

  • 1Brigham & Women's Physician Hospital Organization, Boston, MA, USA.

Healthcare Financial Management : Journal of the Healthcare Financial Management Association
|November 11, 1999
PubMed
Summary

Physician-hospital organizations (PHOs) can improve efficiency and patient access in managed care markets through internal subcapitation. This requires careful planning for data analysis and administrative infrastructure to manage subcapitation effectively.

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Area of Science:

  • Healthcare Management
  • Managed Care
  • Health Economics

Background:

  • Physician-hospital organizations (PHOs) often fail to achieve expected efficiencies with capitation payments.
  • Competitive managed care markets necessitate aligned organizational incentives for PHO success.

Purpose of the Study:

  • To explore the potential of internal subcapitation to enhance PHO efficiency and organizational alignment.
  • To identify key considerations for implementing subcapitation within PHOs.

Main Methods:

  • Analysis of PHO financial structures and incentive mechanisms.
  • Review of strategies for managing professional and facility expenses through subcapitation.

Main Results:

  • Internal subcapitation of expenses can align incentives within PHOs.

Related Experiment Videos

  • Subcapitation budgets and leakage pools can improve efficiency and patient access.
  • Successful implementation requires robust data collection, analysis, and administrative infrastructure.

    • Conclusions:

    • Internal subcapitation offers a viable strategy for PHOs to improve performance in managed care.
    • Careful resource allocation for data and administration is crucial for effective subcapitation implementation.