It recently hit the news that Blue Cross of Massachusetts is considering returning to a capitation system of payment. While this is far from becoming a national trend, it behooves us as practice owners to remember this type of system and what it meant for our businesses. In his article, Peter Lucash reminds us of the pros and cons of capitation and some methods to handle it from a business perspective.
If you are approached about a capitation plan, the contract has to be reviewed carefully, and a financial pro forma has to be built and run. It shouldn’t be a hugely expensive proposition, but necessary. On the other side, you need to monitor the contract and have a good grasp of your costs.