Preparing for capitated hospital services.

From: Healthcare Financial Management | Date: July 1, 1996| Author: | Copyright information

A recent survey showed that most hospitals are unable to manage the risks of capitated care while health maintenance organizations (HMOs) are unwilling to pay hospitals on a capitated basis. However, hospital financial managers can convince HMOs to capitate hospital services by establishing capitation prices based on declining inpatient hospital utilization, setting up risk pools and ensuring high quality services and member satisfaction.

Although HMOs have been reluctant to capitate hospital services, capitated payments allow hospitals greater control over their strategic and economic ...

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