Contact capitation: an alternative for specialist capitation.

Because many specialists do not see capitation as a viable payment option, the most common strategy for paying specialists remains discounted fee-for-service. A transitional form of capitation for specialists, however, is growing in popularity--contact capitation. Unlike traditional capitation, which pays a per-member-per-month amount based on utilization levels, contact capitation payments are made to physicians when they have the first "contact" with new patients. Many specialists find contact capitation attractive because of its similarity to fee-for-service payment. But, unless some adjustments are made, contact capitation rates may underpay certain specialists.