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  • Title: Transition to capitation. Aligning incentives for success.
    Author: Koeppen L, Mess MA, Trott KJ, Yazvac LS.
    Journal: Physician Exec; 1997 Jan; 23(1):14-9. PubMed ID: 10164283.
    Abstract:
    Horror stories abound about providers that have failed to modify their incentive systems and have exhausted their annual capitation budget in the first six months of the plan year. Aligning the business strategy and financial incentives in advance is the best way to ensure that your integrated delivery system's transition to capitation is a success story. Rarely are physicians or hospitals with experience limited to the fee-for-service arena prepared to jump into a managed care or capitated compensation system. The transition can be eased by implementing a "shadow" capitation or similar arrangement that will test physician performance under a risk arrangement in advance. The information can be used to restructure the compensation system to ensure that the behaviors being encouraged will promote successful care and fiscal management.
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