Predicting financial risk under capitation

Managed care capitation schemes entail objective and subjective financial risks. Objective risks can be quantified using anticipated variations in costs and revenues, but subjective risks can still occur if financial managers cannot reasonably anticipate cost and revenue variations. Subjective risks may be minimized by acquiring sufficient data on the population covered by capitation, recruiting a sufficient client base, reducing healthcare service costs and implementation of prevention programs to reduce the volume of clients seeking treatment.