title: Four techniques for managing the risk of capitation contracts.
abstract: Organizations that provide managed care must manage four major cost drivers if they are to achieve financial success under capitation. These cost drivers-number of lives covered, service frequency, service intensity, and cost per unit of service-represent risk factors that can be minimized using several insurance risk management strategies: bearing risk, sharing risk, transferring risk, and undertaking risk-reduction activities. No one strategy will be sufficient to ensure success under capitation; contracting organizations, therefore, should use a portfolio of strategies to manage risk.
authors.affiliation: Jennings Ryan & Kolb, Atlanta, GA, USA.
authors.forename: J B
authors.initials: JB
authors.lastname: Ryan
mesh_terms: D002204:Capitation Fee; D003284:Contract Services / Q000191:economics; D003361:Cost Allocation / Q000379:methods; D004470:Economics, Medical; D015271:Insurance Pools; D008329:Managed Care Programs / Q000191:economics*; D010821:Physicians, Family / Q000191:economics; D012308:Risk Management / Q000379:methods*; D013038:Specialization; D014481:United States