If Capitated Contracts Are In Your Future, Then What?

The business model for health and human service organizations is changing. Traditionally, payers reimburse for the cost of the services delivered – or for the volume of services delivered. But the new models are linking health plan and provider organization reimbursement to value – incorporating cost, consumer health outcomes, and consumer experience into the payment equation. There is a continuum of reimbursement arrangements moving from paying for volume to paying for value – with capitation rates that are based on performance at the "most advanced" end of the scale (see The Business Model Transition To Value-Based Care).

In terms of market evolution . . .