Capitated Payment Models For California Provider Organizations Increased Quality For Commercially Insured Consumers

California-based provider organizations sharing financial risk through a capitated payment model had better health outcomes and performance on quality measures than provider organizations reimbursed using a fee-for-service (FFS) model. In addition, average consumer out-of-pocket (OOP) costs were 60% lower for consumers under the care of a risk-sharing provider organization, at $268 OOP annually, compared to $672 OOP per year for those under the care of a FFS provider organization.

These findings were reported in "Health Care Cost & Quality Atlas" by the Integrated Healthcare Association (IHA). The researchers analyzed data from seven California health . . .