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Key provisions strengthen hospital capitation contracts.
M A Duncheon, Darnell Wolf
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Abstract
Hospitals that accept capitation payments can expect both risks and rewards. The rewards include a dependable revenue stream and economic incentives aligned with those of physicians. The risks are related to payment issues, provision of services, utilization projections, and contract disputes. By ensuring that capitation contracts adequately address these and other issues, hospitals can minimize their exposure to risk.