Capitation Conundrum (Transition to Capitation‪)‬

AS THE REALITY OF CAPITATED CONTRACTS APPROACHES, some troubling issues surface--in particular, making the transition from fee-for-service to capitation. As ideas on how to harness capitation so that it is a controllable tool for change are explored, it appears there is a defined strategy on how to make these ideas work. But what about the transition to capitation itself? What should be done while 10 percent of patients are capitated and the other 90 percent are fee-for-service? Or 40 percent capitated? What changes need to be made and when? Examining the details of this transition demonstrate some areas of conflict that need to be resolved. Transition to using lower cost providers