Surviving and thriving with capitation contracts. Part 3.

Capitation agreements can offer a hospital both immediate and long-term benefits to its bottom line. However, before a hospital enters into such an agreement, it must understand the types of risk involved in this kind of arrangement, evaluate the capitation contract's key assumptions and underlying rate, and manage risk both administratively and financially. In this last article of a three-part series on strategic pricing in health care, the intricacies of capitation arrangements are explored.