Risky business: reporting and recording issues for capitated HMOs.

In the August issue of HFM, risked-based, risk-sharing, capitated HMO plans were defined. In this issue, the risks involved in entering into agreements with these plans and the financial recording and reporting issues to be considered when integrating the current system with capitated HMO reporting are considered. Implementation of capitation programs will require adjustments for the hospital. These programs will require changes to the hospital's database and an extensive analysis of how flexible budgeting will be affected, how capitation can be integrated into current productivity systems, and how traditional approaches of managing hospitals must be changed.