Capitation in IPA-HMOs. Dealing with financial risks and ethical dilemmas

Capitation, a relatively new method of payment, is being used increasingly for primary care physicians in independent practice association (IPA) model HMOs. The author explains the actual payment method, including the various amounts withheld, and the financial risks and rewards inherent in this sys...

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Bibliographic Details
Published inConsultant (Hackensack) Vol. 27; no. 9; p. 100, 103
Main Author Berenson, R A
Format Journal Article
LanguageEnglish
Published United States 01.09.1987
Subjects
Actuarial Analysis
Capitation Fee - standards
Ethics, Medical
Fees and Charges - standards
Independent Practice Associations - economics
Physician Incentive Plans - economics
Private Practice - economics
Risk
United States
United States
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Summary:Capitation, a relatively new method of payment, is being used increasingly for primary care physicians in independent practice association (IPA) model HMOs. The author explains the actual payment method, including the various amounts withheld, and the financial risks and rewards inherent in this system. He then confronts the sensitive ethical issues posed by capitation. Finally, he offers five sound suggestions for physicians who contemplate joining an HMO that employs capitation.
ISSN:0010-7069