title: Exposing the true risks of capitation financed healthcare.
abstract: Many healthcare finance mechanisms involve transferring uncertain costs to healthcare providers in lieu of fixed payments or global capitation. Global capitation violates basic principles of risk management through insurance. Risk-theoretic analysis of capitation shows that risk disaggregation forces efficient providers to become inefficient insurers. Risk-assuming providers face lower profitability and increased exposure to operating losses, and must reduce patient benefits. Global capitation causes inefficiency, increases healthcare costs, and threatens patient-provider relationships.
authors.affiliation: Financial reporting and expense analyst based in Gainesville, Florida, USA.
authors.forename: Thomas
authors.initials: T
authors.lastname: Cox
mesh_terms: D002204:Capitation Fee; D003365:Costs and Cost Analysis; D003695:Delivery of Health Care / Q000191:economics*; D005376:Financial Management / Q000379:methods; D006801:Humans; D007348:Insurance, Health / Q000191:economics; D012308:Risk Management / Q000191:economics