What are the major differences between fee-for-service and capitation payment methods? What provider incentives are created under each of these methods? Which of these two payment methods carry the least risk and the most risk for providers?
Required Reading Berenson, R. A., & Rich, E. C. (2010). U.S. approaches to physician payment: The deconstruction of primary care. Journal of General Internal Medicine. 25(6), 613-618.
Chang, K. & Said, A.A. (2014). The impact of outsourcing on hospital performance. International Journal of Management Accounting Research, suppl. Special Issue. Health Care Costs and Performance, 4(1), 7-26.
Hennig-Schmidt, H., Selten, R., & Wiesen. D. (2011). How payment systems affect physicians’ provision behavior – An experimental investigation. Journal of Health Economics, 30(4), 637-646.
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