The impact of capitation on physician organizations' cost structures: An exploratory analysis

Myles P. Gartland (Rockhurst University, Kansas City, Missouri, USA)
Cathryn A. Carroll (University of Missouri‐Kansas City, Kansas City, Missouri, USA)

Journal of Health Organization and Management

ISSN: 1477-7266

Publication date: 1 October 2004

Abstract

This paper aims to evaluate the relationship between capitation payment methodology and the physician organization cost function. The paper provides evidence supporting a positive relationship between overhead rates and the level of capitation. Based on sample data, US medical practices whose net medical revenue consists of 11 percent or more capitation payments have significantly higher overhead costs per physician FTE.

Keywords

Citation

Gartland, M.P. and Carroll, C.A. (2004), "The impact of capitation on physician organizations' cost structures: An exploratory analysis", Journal of Health Organization and Management, Vol. 18 No. 5, pp. 349-360. https://doi.org/10.1108/14777260410560802

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

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