Tufts Health Plan

Running Head : TUFTS HEALTH PLANNameClassTutorUniversityOn what assumptions is capitation basedCapitation is a fixed buck paid by a person or by the person s employer to a specified health management shaping (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 function offered to the members (Hidalgo , 2008 . Capitation is based on the following assumptionsFirst , it is assumed that the mean economic consumption rate for each service is known or rear end be forecast with precise accuracy . Secondly , assumptions swan that variations in utilization rates in different areas rear end be precisely forecast . The third assumption is that the make of each service is known and will not potpourri 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 be .

Fifth , it is assumed that all the covered and excluded services cop 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 feeler to information opportunities and vastly improved and efficient systems . Other incentives take warring reimbursement arrangements and the Medical Director meetings which help strengthen the coalition . For the MSF , physicians apply all the su! rpluses . These...If you want to get a full moon essay, aver it on our website: OrderEssay.net

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