Industry Insights

Guidance for Healthcare Providers and Purchasers

Leading healthcare data analytics insights:

Will forming an ACO force you into other types of capitation?

Submitted by jonpearce on Mon, 2011-07-18 18:26

As healthcare costs continue to increase, organizations that pay these costs are looking for opportunities to offload the risk of cost increases on to other organizations.  Many states have turned to capitation in the Medicaid programs, moving their utilization and price risk onto the Medicaid HMOs that participate in their programs.  In Massachusetts, insurance companies whose rates are forced down by state regulators are apparently also considering use of capitation to reduce a rate of increase of their costs.