What is in a reasonable capitation agreement?
From the January 1996 ACP Observer, copyright 1996 by the American College of Physicians. Editor’s note: This article is part of ACP Observer’s occasional column dealing with questions about managed care. This month’s respondent is Fred Spong, FACP, MBA, a senior consultant with Milliman & Robertson Inc. in San Diego, Calif. He is clinical professor of medicine at the University of California, San Diego. Dr. Spong is one of more than 50 consultants working with ACP’s Managed Care Resource Center. Q. My independent practice association (IPA) has asked me to accept capitation for my primary care patients. The proposal looks appealing and the IPA has a good track record. What should I look for before signing an agreement for capitation with the IPA? A. Generally, I recommend accepting capitation if the proposed capitation rate and the contract are reasonable. Rejecting it may reduce the chances of being asked again or mean you will be permanently removed from the network. Usually, such a
