Behavioral health at-risk contracting--a rate development and financial reporting guide.

The process of developing rates for behavioral capitation contracts can seem mysterious and intimidating. The following article explains several key features of the method used to develop capitation rates. These include: (1) a basic understanding of the mechanics of rate calculation; (2) awareness of the variables to be considered and assumptions to be made; (3) a source of information to use as a basis for these assumptions; and (4) a system to collect detailed actual experience data.