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Old 12-06-2007, 07:27 PM
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Quote:
Originally Posted by InDebtInDC View Post
To rebut your assertion, I have worked with hundreds of physicians who prefer capitation over FFS. The main rationale for those physicians is that they do not want to feel like an assembly line.
Another advantage of capitation is cash flow. If I have 100 patients from Plan XYZ and I am contracted at $40/month/patient, I know I will get a $4,000 check each month no matter what. With fee for service, if I have a slow month or happen to have relatively uncomplicated patients, I can see a drop off in income even though all my overhead bills stay pretty much the same. With capitation, I also don't have as many billing hassles.

Most plans today blend capitation and FFS. We are capitated for basic care but there is still a fee schedule for procedures above and beyond what is covered by the capitation payment.

Copays are another thing that has changed for the better (for the doctor). I remember when most of my HMO patients had $2 copays. On a busy day, I might take in $80 from seeing 40 patients. Today, however, most copays are $15 or more. Seeing those same 40 patients now results in $600-800 collected in copays. And that is on top of the monthly capitation payment covering those patients.

So capitation isn't such a bad thing IMO. Sure, FFS is generally more lucrative, but it isn't perfect either. I think you'll find that most docs accept some combination of FFS and capitated plans.
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