Preview

Blended Capitation Models

Satisfactory Essays
Open Document
Open Document
172 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Blended Capitation Models
There are basically two kinds of capitation models: “Global Capitation” and “Blended Capitation”. Each one can be applied in various scenarios. Under global capitation, whole networks of hospitals and physicians agree to receive single fixed monthly payments for enrolled health plan members. Payment is made on a per member basis. Basically, providers sign a single contract with a health plan to cover the care of groups of members, and then must determine a method of dividing up the capitated check among the provider group. Under a blended capitation model, a single payment is made for a specific set of services, while other services involved in a patient’s care are paid for on a fee-for-service basis. Under each model of capitation, risk adjustment

You May Also Find These Documents Helpful

  • Good Essays

    Fee-for-service and capitation greatly differs since fee-for-service is charged per line-item or service provided which incentives providers to do more treatments, etc. Capitation is where a provider is paid a set sum of money to provide care to a particular patient. This is common in managed care plans, most notably,…

    • 391 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Beneficiaries Vs TM

    • 218 Words
    • 1 Page

    The V.S has several examples of individual markets. A key choice for medicare beneficiaries. Some key differences between TM and MA. OTM beneficiaries can use most providers at nearly the same out of pocket cost. MA beneficiaries pay less for care, usually much less. Intergration are coordinating care to improve quality. Cost use networks such as drugs, drugs side plan is separate. A regulator’s tool to address selections are risk adjustment and reinsurance. A variety of regulatory constraints. Network and formulary adequacy. Geographic services (specified minimum). Actuarial value (specified minimum). No risk adjustment, healthy person, get more money people become insured. Medicare advantage started formerly in 1945. Medicare paid more if…

    • 218 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    The purpose of a managed care organization is to coordinate the costs and delivery of health care. A managed care organization oversees money spent on labor, technology, and facilities such as physician offices and hospitals. A type of managed care organization is a Health Maintenance Organization (HMO). A HMO “provides medical care for all its enrollees in return for a fixed annual fee per enrollee” (University of Phoenix, 2010, Key Terms and Concepts Section). An HMO tightly oversees the use of health care services thereby reducing costs and controlling utilization. For example, HMO’s…

    • 1187 Words
    • 5 Pages
    Better Essays
  • Best Essays

    In the United States, the term managed health care or managed care is applied to express an array of different concepts and techniques aimed at decreasing the cost of providing health services, as well as improving the service quality. Various health organizations and service providers use these techniques. Sometimes they even offer the techniques to other organizations, which are often called Managed Care Organization (MCO). The United States National Library of Medicine defined managed health care program as an initiative or program of reducing unnecessary costs in the health care system by using assortment of mechanisms, which include economic inducements and motivations for the patients and physicians to choose less expensive forms of health care, different programs and techniques for reviewing and improving the medical requirements in specific services, sharing amplified beneficiary rates, controls and monitoring the admissions of the patients and lengths of their staying in the hospitals, the issues of cost sharing as well as reasons for outpatient surgery. The health care programs and strategies may be provided in different settings within different systems, like Preferred Provider Organizations and Health Maintenance Organizations.…

    • 1477 Words
    • 5 Pages
    Best Essays
  • Satisfactory Essays

    There are several ways the managed care model is expressed one particular way is the Health Maintenance Organization or better known as HMO. HMOs have their own network of doctors, hospitals and other health care providers who have agreed to accept a payment plan at a certain level of services they provide. With HMO, you would have to pick a Primary Care Physician within the local approved network where that doctor can coordinate any additional care you might need. If you need a specialist, a referral would be needed within the HMO network. HMOs usually have lower monthly premiums, but out of network health care professionals are not typically covered by the insurance.…

    • 394 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Associate Level Material

    • 777 Words
    • 3 Pages

    To pay a premium based on the average cost of medical care for the group of people.…

    • 777 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    References: Valerius, J., Bayes, N., Newby, C., & Blochowiak, A. (2014). Medical insurance: An integrated claims process approach (6th ed.). Boston, MA: McGraw-Hill.…

    • 308 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Healthxcare

    • 669 Words
    • 3 Pages

    Capitation has a dramatic impact on provider incentives, and hence on provider behavior. Consider Figures 5.3 and 5.5 in the textbook, which depict revenues and costs to Atlanta Clinic under fee-for-service and capitation. Regardless of the payment system, total costs (TC), which are merely the sum of fixed costs (FC) and variable costs (VC), are tied directly to volume, so the greater the volume of services delivered, the greater the amount of total costs. The difference between the two figures is the total revenues line, and how profits and losses are realized. Under fee-for-service (Figure 5.3), the revenues line is upward sloping, and it starts at the origin. At zero volume, the provider receives zero revenue, but at any positive volume, the greater the volume, the higher the revenue. Under capitation (Figure 5.5), assuming a fixed number of enrollees, total revenues are fixed independently of volume, and hence the revenue line is horizontal. On each graph, breakeven occurs when total revenues equal total costs.…

    • 669 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The health care industry is a multi-million dollar industry. Health insurance, providers, technology management, and inpatient and outpatient procedures are among the many terms that we hear nowadays within this industry. The principal phrase that seems to be ringing in the ears of the government and policymakers are debt and cost-control. There are fundamental concepts that should be understood throughout the health care industry as it relates to finance. On one hand, many individuals have a general knowledge concerning health care organizations from the standpoint of insurance, copays, and deductibles. These constructs are more familiar to a person that has any health care needs due to the routine of having to provide some form of payment…

    • 726 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Managed care has been formed since the 1930 and evolved over the last ten years. Since the evolving of managed care there are three types of managed care plans. People that are enrolled in private health insurance are subscribed to a type of managed care plan. There are many differences between the three types of managed care plans and they also have similarities. The involvement of managed care plans are between the insurer and the selected network of health care providers, and the policyholder’s financial incentive that are used by the providers in the network. There are precise measures for choosing a managed care plan and conventional procedures to acquire quality care (Types of Insurance, 2010).…

    • 686 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Evolution of Managed Care

    • 1519 Words
    • 7 Pages

    Managed care is a type of system that was formed to help control the costs and quality to health care services; this will give access to services to specific groups of covered patients. The system was created to help the patients (customers) to receive services without having the full financial burden (University of Washington, 1998). The managed care services’ goal is to be able to help individuals and their families by providing health care services that is affordable. This type of managed care will help employees or individuals by requiring a set fee to be paid to the physician for visits, a co-pay and monthly premium to be paid to the insurance company. This will lower the amount that the patient has to pay. There have been many demands that have been needed in the managed care system; changes have had to be made to keep improving the health care services to help it to continue to grow. This paper will cover how the managed care began, in addition to how the system has grown and the changes of the system.…

    • 1519 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Medicare Funding Crisis

    • 1692 Words
    • 7 Pages

    As the newly appointed chief of staff I have been tasked with responding to a proposal for reducing Medicare expenditures by enrolling participants in HMO. I understand that we have some key questions must be addressed and that we must justify our position on either economic efficiency or equity grounds. Outlined below are some of the questions that must be answered in order address this issue properly.…

    • 1692 Words
    • 7 Pages
    Good Essays
  • Best Essays

    Managed Care History

    • 4302 Words
    • 18 Pages

    The main point of managed care consist in lowering costs of health providers’ services by means of negotiating with many providers for better prices, creating incentives for physicians and specialists, and establishing selective contracts with hospitals and health care providers. In this system, patients do not pay for each separate service provided to them, but for the whole bulk of services which is conditioned by health insurance organizations. By creating branched networks of hospitals and health care providers and combining financing and delivery of health care, HMOs obtain better prices for their clients and make health care plans more flexible. Moreover, in most HMOs each patient is connected to a primary care physician who is responsible for providing diagnostics and transferring patient to different specialists. At the same time, downside of HMOs consists in the fact that patients’ choice of health care providers is somehow limited, as he/she can choose only among those which are members of a network of a certain HMO (Bihari,…

    • 4302 Words
    • 18 Pages
    Best Essays
  • Good Essays

    Capitation is an entirely different type of reimbursement system because it prospectively reimburses a set amount over time for each patient, regardless of the services provided. Many managed care payers utilize this model to reimburse primary care providers (Gapenski, 2012). This model helps reduce the risk to payers for over-utilization of healthcare services (Gapenski,…

    • 433 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Individual payments for health care services received have undergone many changes over the past one hundred and fifty years in this country. For many years a fee for service system was in place. This was acceptable at the time because costs were low. However, as costs began to rise, changes in the system occurred as well. Private insurance companies started to form in the 1920s to help consumers afford medical care when needed. Through several evolutions over the years and due to increased costs of medical care, we saw new market oriented public policy initiatives starting to form by the 1980s. In 1970 health care spending represented 7% of the national income, but by 1993 it grew to 13.4% (White, 2004). Health care costs were starting to get out of hand and something needed to be done to address it. "In the public sector, important initiatives included the introduction of the Medicare Prospective Payment System, a range of state reform efforts, and the Clinton administration 's health reform initiative. At the same time, private insurers introduced changes that set in motion a fundamental restructuring of relationships in the health care market place, ultimately giving rise to managed care" (White, 2004). This paper will discuss the rationale, effectiveness, strengths, and weaknesses behind this relatively young reimbursement payment system called managed care.…

    • 1167 Words
    • 5 Pages
    Powerful Essays