Tufts Health Plan

Running Head : TUFTS HEALTH PLANNameClassTutorUniversityOn what assumptions is capitation basedCapitation is a fixed bourgeon paid by a person or by the person s employer to a specified health management formation (HMO ) no matter whether the person makes use of the HMO s providers or not (Kleinke 2008 . Payments are usually made every month and do not depend on the number of serve offered to the members (Hidalgo , 2008 . Capitation is based on the following assumptionsFirst , it is assumed that the mean manipulation rate for each service is known or skunk be forecast with precise accuracy . Secondly , assumptions insist that variations in utilization rates in different areas lav be precisely forecast . The third assumption is that the represent of each service is known and will not miscellany in the duration of the contract Fourth , it is assumed that no hidden cost are present and amendments can be made in the PMPM (per member per month ) for such costs .

Fifth , it is assumed that all the covered and excluded services waste been adequately characterized . An additional assumption is that discounts represent efficiency . at last , it is assumed that the PMPM can be boosted by extra income2 . What otherwise incentives do physicians havePhysicians have a host of incentives among them access to information opportunities and vastly improved and efficient systems . Other incentives include warring reimbursement arrangements and the Medical Director meetings which help strengthen the partnership . For the MSF , physicians apply all the surpluses . These...If you want to get a full essay, aver it on our website: Orderessay

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